Infrastructure funds looking to invest in Vodafone’s Vantage Towers - report

Global infrastructure funds have reportedly approached Vodafone to invest in its $16bn mast company Vantage Towers, but the telecoms group's preference is for an industry merger.

According to Reuters, the bidders - which include investment firms Brookfield and Global Infrastructure Partners (GIP) - have submitted unsolicited proposals in recent weeks valuing Vantage Towers at a premium to its current valuation of €15bn.

The offers are for a majority stake in Vantage Towers, a source said, adding that Vodafone was studying the proposals and had not taken any decision.

Reuters cited sources as saying that Vodafone, which listed Vantage Towers in Frankfurt last year and still owns 81% of the business, has been reluctant to engage in talks with financial investors as it would prefer an industry merger for Vantage with either Deutsche Telekom's towers unit DFMG or Orange's Totem.

A spokesperson for Deutsche Telekom told Reuters that the company was reviewing strategic options for its infrastructure business, without elaborating.

At 0900 GMT, Vodafone shares were up 1.6% at 128.02p.