Spain's Ono to renegotiate debt after Vodafone takeover: report

MADRID Sun Apr 6, 2014 8:14am EDT

A truck carrying cars speeds past the headquarters of Vodafone in Madrid March 17, 2014. REUTERS/Susana Vera

A truck carrying cars speeds past the headquarters of Vodafone in Madrid March 17, 2014.

Credit: Reuters/Susana Vera

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MADRID (Reuters) - Spanish cable group Ono, which agreed to a takeover offer from Vodafone (VOD.L) last month, will renegotiate the terms of its large debt pile, the head of the British telecom group's business in Spain said in a newspaper interview.

Ono, purchased by Vodafone for 7.2 billion euros ($9.9 billion) including debt, has around 3.4 billion euros of bank loans and bonds.

"We will renegotiate the debt to obtain conditions that are more compatible with our financial situation," Antonio Coimbra, chief executive of Vodafone Spain, told El Pais newspaper on Sunday.

He did not detail what structure or terms Ono and Vodafone would seek.

Coimbra said Vodafone hoped to get European Commission approval for its Ono acquisition in three to four months.

He added that the company would seek to end, as soon as possible, a contract Ono has with Spain's Telefonica (TEF.N) until the end of 2015, which allows it to use Telefonica's mobile phone network.

Vodafone's acquisition of Ono has shaken up Spain's highly competitive telecoms market, and could prompt more consolidation as players such as France's Orange (ORAN.PA) seek out deals to avoid falling behind. ($1 = 0.7303 euros)

(Reporting by Sarah White; Editing by Anthony Barker)

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