Citi Reports LBTYA Possibly Bidding For Ziggo

Citi has issued a report that Liberty Global Inc LBTYA may be bidding for Dutch cable firm Ziggo. According to the report, "EBITDA Mix shifts in the right direction — LGI generates 57% of its current EBITDA from Western Europe. After the KBW and potential Ziggo deal, LGI will generate 69% of its EBITDA from Western Europe. A sale of Austar would increase European share of total EBITDA to 72%. We see this potential shift as a positive for LGI's multiple since the growth rates may improve and the story may be simpler for the Street to assess." Liberty Global has a Buy Rating and a $49.00 Price Target. Liberty Global closed yesterday at $41.71 a share.