- Liberty Global ( NASDAQ: LBTYA ) has taken a 4.92% stake in Vodafone ( NASDAQ: VOD ), but says it's not considering a takeover of the UK telecom.
- It's also not seeking board representation, and the level of investment doesn't rise to that requiring regulatory approval.
- Vodafone stock ( VOD ) jumped 4.2% on Nasdaq Monday. Meanwhile, Liberty Global class A stock ( LBTYA ) fell 1.7% in U.S. trading.
- Liberty Global acquired 1.335B shares, mainly funded through "attractive" nonrecourse financing calling for equity funding of just £225M.
- “We believe, like many others, that Vodafone’s current share price does not reflect the underlying long-term value of their operating businesses, or their announced consolidation and infrastructure opportunities," Liberty Global CEO Mike Fries said.
- "We continue to remain disciplined about our capital and fully expect that the equity used to fund this investment will be replenished with the sale of certain noncore assets over time," Fries said.
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Vodafone rises as Liberty Global takes near-5% stake