MADRID (Reuters) - British telecoms group Vodafone <VOD.L> has reached a preliminary deal to buy Spanish cable group Ono after revising up this week an initial bid for the company, two sources with knowledge of the discussions said on Friday.
"A meeting took place yesterday between the shareholders and (Vodafone Chief Executive) Vittorio Colao. The due diligence will start this weekend in order to make the offer binding," said one of the sources.
A second source said Ono's private equity shareholders told Vodafone at the meeting that the offer would have to be "substantial" and come before March 13, when the cable group is due to formally go ahead with a planned initial public offering to list on the Madrid stock exchange.
Both Ono and Vodafone declined to comment.
(Reporting by Andres Gonzalez and Julien Toyer; Editing by Fiona Ortiz)
hollywoodtone.blogspot.com Exclusive-Vodafone reaches preliminary deal to buy Spain's Ono: sources