Vodafone‘s share price dipped this morning after the company denied rumours that it is discussing a merger with Liberty Global.
Discussing rumours that emerged overnight, Vodafone confirmed that the two telecoms giants were discussing a "possible exchange of selected assets between the two companies".
The statement denied that the two companies were discussing a merger, a suggestion that had featured in the original Bloomberg report.
The telecoms giant also emphasised that the talks were in early stages, adding that "there is no certainty that any transaction will be agreed, nor is there certainty with respect to which assets will ultimately be involved."
The report, which originally emerged in Bloomberg, saw Vodafone‘s share price rise 2 percent in overnight trading. However, it dropped around 4 percent immediately after the statement.
Meanwhile, Liberty Global, which owns the UK provider Virgin Media, saw its share price rise 5 percent in overnight trading.
The move would be the latest in a wave of deals in the telecoms sector, including BT’s acquisition of EE and Hutchinson Whampoa’s acquisition of Telefonica-owned O2.
The talks could concern a handover of Vodafone’s mobile assets in Europe, allowing Liberty Global to operate as an MVO rather than piggybacking on other providers’ networks.