Will Liberty Global (LBTYA) Stock Gain Today on Vodafone Merger Talk?

NEW YORK (TheStreet) -- Shares of Liberty Global (LBTYA) are slightly lower at $51.80 in pre-market trading after sources told Bloomberg that Vodafone Group (VOD) is considering a combination with John Malone's companyto create a European phone, Internet and TV company valued at more than $130 billion.

The British phone company is holding internal deliberations and analyzing the financial and regulatory hurdles as well as investor support for a share-based transaction, the sources said.

No formal negotiations with Liberty are under way, there's no guarantee a deal will be reached, and valuation and regulatory issues remain key obstacles, the sources added. In particular, Vodafone has concerns about the combined company's debt levels and the reaction of its own investors to a deal, one source noted, Bloomberg reports.

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Will Liberty Global (LBTYA) Stock Gain Today on Vodafone Merger Talk?