By David Román
MADRID--The board of Spanish cable operator Ono SA approved a
plan to go ahead with a long-anticipated initial public offering,
people close to the situation said, after shareholders rebuffed
informal approaches from Vodafone Group PLC of the U.K. and U.S.
cable firm Liberty Global Inc.
Ono's board met Tuesday to review the firm's strategy as Spain
slowly emerges from a recession. Founded 15 years ago and
controlled by several investors including U.S. private equity
groups, Ono has been looking at a possible listing for over a
decade, but the recession forced shareholders to shelve those plans
until recently.
Some Spanish media reported Tuesday that the board reviewed a
EUR7 billion offer from Vodafone. However, the people close to the
situation said there has been no formal offer from Vodafone or any
other party.
Ono will convene a general shareholders meeting in March to
present the IPO plan for approval, these people said.
Bankers and others involved in the discussions say Vodafone and
Liberty Global may stay in contact with shareholders, and an
outright sale rather than an IPO may still be a possibility in
coming weeks.
Ono is the latest acquisition target in a closely watched
European telecom sector, which remains fragmented and has attracted
strong interest from corporate suitors world-wide.
Vodafone and Liberty Global have been a particular focus of
activity and speculation. Las month, Vodafone shareholders approved
the company's $130 billion sale of its 45% stake in Verizon
Wireless to joint-venture partner Verizon Communications Inc.,
which leaves the firm with resources to shore up its competitive
position in Europe.
Also last month, Englewood, Colo.-based Liberty Global, the
international cable vehicle of U.S. media mogul John Malone, agreed
to acquire full control of Dutch cable company Ziggo NV for about
$9.4 billion. Liberty Global has been an active deal maker in
Europe over the past two years, and analysts say Mr. Malone's
ambitions on the continent are far from satisfied.
Ono had revenue of 1.57 billion euros ($2.1 billion) in 2012,
the last year for which there are full financial details available,
and has 1.8 million customers.
The company managed to navigate Spain's two-year recession,
which ended last summer, better than many rivals such as Telefonica
SA. However, it has relatively narrow margins, with just 52 million
euros in net profit in 2012, and still faces strong competition in
a market that remains hobbled by low private spending.
Spokespeople for Vodafone and Liberty Global declined to
comment.
Write to David Román at david.roman @wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires