Vodafone eyes European asset buy from Liberty Global

British mobile phone giant Vodafone on Friday said it is in talks to buy European assets of US peer Liberty Global, dismissing reports the pair are planning a full merger.

"Vodafone confirms that it is in early stage discussions with Liberty Global regarding the potential acquisition of certain overlapping continental European assets owned by Liberty Global," said a statement.

"There is no certainty that any transaction will be agreed, nor as to the terms, timing or form of any transaction."

The brief statement added: "Vodafone is not in discussion with Liberty Global regarding a combination of both companies."

The announcement comes one day after Vodafone announced a drop in its revenue during its third quarter—sending the company's share price sliding 4.5 percent.

The group closed up 2.4 percent on Friday at 219.5 pence on London's benchmark FTSE 100 index, which lost 0.6 percent overall.