Feeds

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

Cash-rich mobe telco licks lips over Spanish beauty

Security and trust: The backbone of doing business over the internet

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.

Protecting users from Firesheep and other Sidejacking attacks with SSL

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Turnbull: NBN won't turn your town into Silicon Valley
'People have been brainwashed to believe that their world will be changed forever if they get FTTP'
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.