Vodafone could raise funds for a takeover of Virgin Media's parent company Liberty Global by selling off its networks in Africa, the Middle East and Asia-Pacific (AMAP), it has been claimed.
As reported by the Guardian, Berenberg proposes the sale of infrastructure assets in countries such as South Africa, India and Australia to raise finance for a bid.
The analyst firm says Vodafone's AMAP decision is worth up to £30 billion - money that could then be invested in the US telecoms giant, which it has been linked to previously.
Paul Marsch and Laura Janssens, Analysts at Berenberg, said a combination of Vodafone with Liberty Global - which owns several European cable operators, including Virgin Media - "makes clear strategic sense".
They claimed that Vodafone’s wide geographic spread "has been much more about the benefits of diversification than about scale and efficiency".
“If Vodafone feels that the strategic merits of acquiring Liberty Global are overwhelming, then a deal palatable to most could likely be achieved by pursuing the disposal of the AMAP region," Mr Marsch and Ms Janssens added.
This could pre-fund the acquisition and moderate the impact of the deal, they said.