10/27/2014 11:16:24 AM
Vodafone investigates fraud allegations at Ono
Vodafone is investigating allegations of fraud at Ono the Spanish cable company the firm agreed to buy for €7.2bn in March of this year.
Commenting on the allegations a spokesperson for the company said: ‘As soon as Vodafone became aware of the issue we instigated a forensic audit to investigate the facts relating to the alleged fraud.’
According to reports, the investigation will examine allegations that Ono failed to make value-added tax declarations.
The takeover gave operator a significant foothold in unified comms in Spain. Ono is the market leader in high speed broadband serving 1.9 million customers in 13 of Spain’s 17 regions.
At the time Vodafone bought Ono it indicated it would be using the acquisition to leverage cross-selling opportunities to the company’s customer base. The British firm estimated revenue synergies of EUR1 billion (£800m).