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Liberty Global sells off Austria to reduce debt to equity leverage

The Liberty Global story is all about gaining market share, and where it either cannot, because it has the wrong resources, or finds it costs too much, it bails out. That’s the sign of a strong “shareholder value” based business, and it’s tough to accuse Mike Fries and co, of being anything other than shareholder friendly. Which is why the sale of Liberty Global in Austria to rival Deutsche Telecom, through its mobile subsidiary there T-Mobile, makes perfect sense. The price of €1.9 billion extracted just after our last issue, values UPC Austria at around 11 times Operating Cash Flow, about the correct price for such a transaction. The money, we are sure will be put to good use, although…

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