Vodafone ends Liberty Global talks

Vodafone says it has ended talks with Virgin Media owner Liberty Global over a potential asset swap.

In June, the mobile phone network had said it was talking to Liberty Global over "a possible exchange of selected assets between the two companies".

The two firms never disclosed which assets they were thinking of swapping.

The deal was seen as a key part of Vodafone's strategy and shares in the telecoms firm fell 5% in London.

Two weeks ago Liberty Global chairman John Malone had warned the two sides were struggling to find common ground.

Shares in the cable giant have also fallen in early trading in New York, losing 8% to $44 at 17:20 (BST).

'Mission impossible'

Claire Enders, founder of research firm Enders Analysis, said: "Why were people disappointed when mission impossible foundered? I don't know."

She said one possible sticking point was on Liberty Global's high valuation of its prized asset, Virgin Media.

Regulatory issues in Germany, where Vodafone and Liberty Global own the two biggest cable operators, and the Netherlands also clouded the talks.

The telecoms industry has been going through a period of deal making as phone companies attempt to offer their customers packages of television, broadband, mobile and traditional phone services.

Investors have been keen to see Vodafone's next move after it sold a 45% stake in US-based Verizon Wireless for $130bn (£84bn) in 2013 - one of the biggest corporate deals in history.

Last year it acquired Germany's Kabel Deutschland for €7.7bn (£5.7bn), and was also linked to a deal for BSkyB.