Vodafone buys Ono -

British phone company Vodafone has written a $10.03 billion cheque to buy the Spanish cable outfit Ono.

We are not sure, but believe that this could be part of a cunning plan to get the Beatles back together, after all Ono and an ability to raise the dead was all that stood in the way of getting the world’s most famous boy band into the recording studio.

Analysts that are more serious tell us that this is just the latest move by the British group to acquire fixed-line assets to rebuild its European operations.

Vodafone said that the move would also save it a lot of dosh because it can achieve cost and capital expenditure savings of approximately 240 million euro, before integration costs after four years.

This is Vodafone's third buy of a European fixed-broadband asset in two years as the company seeks to improve its networks and shore up its European businesses after they were hit by fierce competition, the recession and regulatory cuts.

Vodafone said that it will invest in its networks, and acquire assets where necessary, after selling its US arm for $130 billion last year.

The price of Ono is high. In fact, it is 10.4 times the group's operating free cash flow, but then that is more or less how much a cable company is going for in the European cable and telecoms sector, so analysts are not concerned.