Liberty Global takes 4.9% stake in Vodafone, rules out offer

Liberty Global purchased a stake in rival Vodafone in what market observers described as an opportunistic bid - but ruled out a possible offer .

Liberty's chief executive officer, Mike Fries, reportedly said that the current share price did not reflect "the underlying long-term value of [Vodafone's] operating businesses, or their announced consolidation and infrastructure opportunities."

The 4.9% stake in Vodafone was financed through roughly £225m of equity funding.

Other actors in the sector were apparently of a similar view with French billionaire Xavier Niel having picked up a 2.5% stake in Vodafone in September, while United Arab Emirates-based e& had accumulated a 13% stake in the operator.

Vodafone and Virgin Media 02, in which Liberty Global held a 50% stake, were competitors in the UK.

ADRs of Vodafone ended the New York session 4.85% higher at $11.66.