Consolidation continues in Europe's fragmented telecom sector, with Vodafone (VOD) inking a deal to buy Spanish cable company Ono SA for just over €7B, reports the WSJ. The U.K. player will assume Ono's €3.34B in debt and pay the rest in cash to Ono's shareholders. The planned Ono IPO approved just last week will obviously be preempted.
Vodafone has struggled competing with Spanish telecoms offering bundled packages of high-speed home Internet, pay-TV, and cell phone service, but the Ono purchase will give it a much-needed fixed line operation.
From Friday: A Vodafone/Ono deal is near.