UK’s Zegona in talks to buy Vodafone Spain

British telecom investment company Zegona is in advanced talks with Vodafone about a potential acquisition of the British telecom giant’s Spanish business, the London Stock Exchange disclosed on Friday.

The confirmation follows a report by Spanish business newspaper that Zegona is planning to buy a 50 percent stake in the unit, in a bid that would value the business at more than five billion euros ($5.33 billion).

In July, new Vodafone CEO Margherita Della Valle disclosed that the operator was carrying out a “big review of the business in Spain”, with cost-cutting actions underway.