Feeds

Ono board mulls Vodafone's offer to grab its pipe for £5.8bn

Cash-rich mobe telco licks lips over Spanish beauty

SANS - Survey on application security programs

The board of Spain's biggest cable operator Ono will meet today to decide if it should accept a £6bn (€7bn) bid from Vodafone or push ahead with its plans for an IPO.

The sale would see a reasonable return on investment for the four venture funds Anglo-CCMP, Providence, Thomas H Lee and Quadrangle, which invested in 2005.

Selling at €7bn would clear Ono's debt of €3.42bn and give the investors a return of €3.58bn. The four investors put in €1bn for a 54 per cent stake and would see a return of €1.8bn. This is a moderate rate of return in the VC business.

Some experts argue that this is too low a figure, as it would place the offer at 9.5 times EBITDA (earnings before interest, taxes, depreciation and amortization) and that the business environment generally dictates an offer of between 10 and 12 times EBITDA.

The bid is believed to have been trigged by Vodafone becoming cash-rich following the sale of its stake in Verizon Wireless, and the combined strength of a mobile and broadband offering to take on rival Telefonica on its home ground.

Telefonica is expected to roll out fibre to seven million Spanish homes by the end of the year, while rivals Orange and Vodafone will fail to reach half that. Buying Ono would allow Vodafone to match the Telefonica roll-out.

Ono's network would provide Vodafone with both backhaul and potentially more sensible offload options. Ono has a good brand, and a very strong fixed telephone and subscription TV offer. It would, however, be likely that Vodafone would phase out the brand over time. Ono has 1.5m customers which would take Vodafone’s cable customers to 2.4m, with speeds of 100 and 200MB/s

The takeover would mirror Vodafone’s £6.6bn (€7.7bn) purchase of Kabel Deutschland last September.

3 Big data security analytics techniques

More from The Register

next story
Virgin Media so, so SORRY for turning spam fire-hose on its punters
Hundreds of emails flood inboxes thanks to gaffe
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
Turnbull leaves Australia's broadband blackspots in the dark
New Statement of Expectations to NBN Co offers get-out clauses for blackspot builds
Facebook claims 100 MEEELLION active users in India
Who needs China when you've got the next billion in your sights?
Facebook splats in-app chat, whacks brats into crack yakety-yak app
Jibber-jabbering addicts turfed out just as Zuck warned
Google looks to LTE and Wi-Fi to help it lube YouTube tubes
Bandwidth hogger needs tube embiggenment if it's to succeed
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.