Cashed Up Vodafone Look At Buying iiNet Or TPG

Written by David Richards     12/02/2014 | 08:27 | Category: INDUSTRY

Cashed up International communication Company Vodafone is currently exploring the possibility of acquiring local communication Company's with both iiNet and TPG Telecom in their sights.

Cashed Up Vodafone Look At Buying iiNet Or TPG

According to the Australian newspaper the UK based Company who recently sold part of their business empire for $US130 billion ($144bn) to Verizon Communications in the US has already had talks with iiNet and TPG Telecom after its chief Vittorio Colao revealed he was exploring possibilities for buyouts.

While it is understood that Vodafone Group is in no rush to complete a deal, sources have indicated that the company wants to make a serious play in the fixed-line broadband market in the next 12 to 18 months with the real possibility emerging that the UK Company could acquire both organisations in a move that could put pressure on both Telstra and Optus.

The Australian said that the company's ambitions to crack the fixed-line business were put on the back burner during the past two years as it focused on repairing its brand and mobile networks under the guidance of Bill Morrow, who will soon leave the company to head NBN Co.

But with Vodafone on the mend and its parent soon to be flush with cash from the sale of its 45 per cent stake in Verizon, the company could pursue plans to look at acquisitions here instead of starting its own broadband arm in what is already a highly saturated and contested market.

Sources close to Vodafone and iiNet said the boards of both companies had "serious" discussions about merging as far back as 2011.