Vodafone, Hutchinson To Announce UK Merger

Vodafone and CK Hutchison are in the final stage of agreeing to merge their British operations, with an announcement expected as soon as Friday or early next week, three sources to Clare Jim and Paul Sandle of Reuters.

Photo Insert: Vodafone will own 51% and Hutchison 49% of the combined group, which could be worth around 15 billion pounds ($18.6 billion) including debt, in line with an announcement made by Vodafone in October.

Shares in Vodafone jumped 3% on the news. Vodafone will own 51% and Hutchison 49% of the combined group, which could be worth around 15 billion pounds ($18.6 billion) including debt, in line with an announcement made by Vodafone in October, one of the sources said.

The respective stakes would be achieved by adjusting the ownership of debt rather than exchanging cash, the companies said in October.

Talks about the deal to create Britain's biggest mobile operator have been protracted. Hutchison's chief financial officer Frank John Sixt said last month that getting it over the line was proving to be "extremely difficult."

Vodafone's new Chief Executive Margherita Della Valle is under pressure to agree on deals in major markets to improve the pan-European and African operator's performance.

Her predecessor Nick Read identified Britain as one of four markets that would benefit from consolidation, but a lack of progress frustrated shareholders, leading to his stepping down in December.

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