Liberty Global’s Virgin Media merging with mobile operator O2 in the UK would be an infinitely better outcome than Vodafone getting its hands on Virgin Media and one that is much more likely to appease regulators – but that should not deter Vodafone from lining up a counteroffer for Virgin Media. Even if the more favorable deal on paper between Virgin Media and Telefonica-owned O2 goes ahead, we feel the UK could still be in danger of experiencing an equivalent to the formation of VodafoneZiggo in the Netherlands, a disruptive deal that somehow slipped past antitrust regulators with major long-term implications. The warning signs are all there – combining a cable TV and fixed broadband powerhouse with a strong…