VODAFONE GOES VROOMMMM

Vodafone could show that size isn't everything in M&A. The British mobile operator is in talks to buy some European assets from Liberty Global, chaired by cable cowboy John Malone, after-

Previous attempts at a merger stalled. Excluding the two sides UK business reduces synergies but also lowers regulatory and financial barriers.

It's no secret that Vodafone boss Vittorio Colao is interest in the $30 billion cable group.

Rival telecom giants -including BT in the United Kingdom and Germany's Deutsche Telekom -increasingly bundle, mobile, TV and broadband internet together to cross-sell services to customers and make them less likely to switch providers.

Vodafone and Liberty Global have complimentary businesses in Germany, Britain and eastern Europe.

But forming a near $115 billion giant would be challenging.

Vodafone operates will less debt and pays a dividend, while Liberty has higher leverage and rewards shareholders through buybacks.

Talks of an asset swap in 2015 came unstuck in part over difficulties agreeing a valuation, though the two sides subsequently formed a joint venture in the Netherlands.

This time seems different. Following a  Financial Times report that talks of an asset swap had restarted, Vodafone said on Friday it is discussing an acquisition of Liberty's overlapping European assets.

Assuming that means Germany and eastern Europe, a deal looks manageable; Liberty's EBITDA from those businesses will be about $2.5 billion this year, according to Morgan Stanley analysts.

On a typical cable-industry multiple of 7.5 times, the value of the deal including debt would be just under $19 billion, or just over 15 billion euros.