Cash call
Cash rich Vodafone has been tipped as a possible buyer of high street chain Phones4U and TalkTalk as it mulls how to spend its money made from selling its minority stakes in phone operators abroad.
The Daily Telegraph reported that Vodafone is one of a handful of companies eager to gets its hands on Phones4U which has around 473 shops in the UK, according to anonymous sources at the chain's private equity owner, Providence Equity.
However, Vodafone may have to fight off competition from the likes of Dixons' parent company DSG and Game Group if it is serious in its intentions. None of the potential buyers have confirmed their interest.
Phones4U is expected to make about £125m (before tax) on sales of about £800m this year, according to the newspaper. It was snapped up by its current owner, Providence in 2006, making its founder, John Caudwell a billionaire.
However, analysts at Liberum Capital are said to believe that Vodafone should plump for TalkTalk so it can offer its customers bundles of services like pay TV, broadband, home and mobile phones in future. TalkTalk is estimated to have a market value of around £1.25bn.
