Vodafone, Liberty merger mooted

US media giant and ITV stakeholder Liberty Global could be set for a £120bn (US$185bn) merger with UK-based telecoms group Vodafone.

The deal would allow the companies to offer pay TV services along with broadband, home and mobile phone packages to customers and enable both Liberty and Vodafone to expand their European interests.

Vodafone’s biggest shareholders have “urged” its management to embrace a deal to split its European business from its global operations, with Liberty then partnering up with the telecoms firm in Europe, according to UK newspaper The Telegraph.

Talks between the firms are not yet underway but the news comes after Liberty owner John Malone suggested a merger could be on the cards last week.

His firm has increased its European activity since a 2013 takeover of UK cable company Virgin Media, linking up with Discovery Communications to buy European producer and distributor All3Media in May last year. It then took a US$824m stake in UK broadcaster ITV in July.