Vodafone and Liberty Global could still broker a deal to merge certain assets, but they will first have to figure out a way to live together, according to Liberty Global chairman John Malone.
There is scope for the two companies to create real value by bringing together parts of their businesses, "but realistically we haven’t been able to figure out a way to do that that’s mutually successful," Malone said in an interview with Bloomberg.
The companies could still find a solution, but there are no guarantees that will happen, Malone told the newswire. The firms have yet to come up with a possible deal structure that they could pitch to shareholders, he said.
There has been talk of a tie-up between Vodafone and Liberty Global for some time.
In June Vodafone confirmed that the pair were holding discussions about swapping certain assets, but insisted that a full merger is not on the cards.
There are obvious benefits to a combination of Vodafone and Liberty Global assets in some markets.
A merger of Liberty Global’s Virgin Media unit with Vodafone UK would create a strong player in the U.K. quad-play market, while Malone has previously talked up possible synergies in Germany and the Netherlands.
In the Bloomberg piece published on Tuesday, Malone did not rule out a full acquisition of Liberty Global, at a price, but said it is unlikely Vodafone would take that route.
"Other than that, it’s a question of could you figure out some way to live together," he said.
