Ono, the Spanish broadband and telecoms provider, is working on an IPO but its plans could be changed by a bid from the mobile industry with Vodafone the likeliest to step up, according to Financial Times.

Private-equity backed Ono is looking at a Madrid listing later this year that could value it as high as €7 billion. While no banks have been chosen, JP Morgan and Deutsche Bank are thought to be in the frame.

The owners want to capitalise on a recent increase in the value of cable assets.

However, their plans might change if a mobile operator steps forward with a bid. Vodafone is considered the most likely given its previously stated interest in adding fixed infrastructure in markets where it has a mobile presence.

Vodafone and Orange are vying for second spot in the Spanish mobile market. The latter is also considered a potential bidder for Ono, according to sources.

Last year, Vodafone deployed a similar rationale for its Kabel Deutschland acquisition. A deal for Ono would be of similar size.

In addition, Liberty Media might also consider a run at Ono, so heightening competition and driving up the asking price.