Vodafone to try equity-neutral mando magic again

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By Jon Hay
10 May 2018

Vodafone has lived up to its reputation for daring in corporate finance by launching an €18.4bn takeover of Liberty Global’s German business Unitymedia that includes a second outing for the unique and controversial equity-neutral mandatorily convertible bond it first used in 2016, writes Jon Hay.

The structure promises to achieve the financial alchemy of giving Vodafone’s balance sheet equity ballast to steady it through the takeover, while allowing shareholders to feel they are not going to be diluted by the issuance of new shares.

Vodafone is confident the €3bn deal will achieve at least ...

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