Liberty Global (NASDAQ:LBTYA) is the largest international cable company with operations in 14 countries providing video, broadband Internet, fixed-line telephone and mobile services to its customers. In the second quarter, investors cheered as Liberty Global and Vodafone entered into formal talks over potential business combinations within their European operations. Although no formal details were released, Wall Street analysts began speculating on the potential for very large cost savings, and shares of both companies appreciated nicely. By the end of the third quarter, however, talks between the two broke down without any deals announced. Such a transaction had not been part of our investment thesis. We remain attracted to the organic growth story for Liberty Global as their leading position in broadband should continue to help them win market share across Europe, along with their shareholder-friendly capital allocation philosophy.
From Wallace Weitz (Trades, Portfolio)'s 3Q 2015 commentary.
