ONO shareholders approve IPO but may still opt for Vodafone deal

ONO’s shareholders yesterday approved plans for an initial public offering of the company’s shares. However, the company may proceed slowly with preparations to allow Vodafone time to make an improved bid, according to unnamed sources cited by Bloomberg.

According to Bloomberg, ONO will postpone the announcement of its intention to float and investor meetings to next week as it continues to negotiate with Vodafone, which may make an improved offer on Monday. Vodafone is understood to have tabled about €7.2 billion including debt in its latest offer for the Spanish cable operator.

According to the Financial Times, citing an unnamed source, yesterday’s shareholders’ meeting did not consider the Vodafone offer, which has been made to some shareholders but does not include binding terms.

The FT also reported that Vodafone is still in talks with some of the company’s larger shareholders.

Vodafone now has the option of making an improved offer or of waiting until the company is floated and seeking to acquire it afterwards, as it did in the case of Kabel Deutschland.

ONO’s principal shareholders include Providence Equity Partners, Thomas H Lee Partners, CCMP Capital Advisors and Quadrangle Capital Partners.