Investors' hopes of a mega-merger between mobile titan Vodafone (VOD) and cable giant Liberty Global were dashed after management dismissed market rumours, saying discussions were limited to a possible exchange of assets. But they softened the blow by subsequently launching Vodafone Connect, a nationwide fixed-line and broadband service.
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Growing mobile competition in the UK could lead Vodafone to combine its UK assets with Liberty's Virgin Media. Rival EE may soon be swallowed up by BT (BT.A), while peers Three and O2 are close to tying the knot. Analysts have also raised the prospect of Vodafone and Liberty joining forces in Germany - where both have significant fixed-line footholds - or launching a joint venture.
