(Corrects headline and paragraph 1 to substitute joint venturefor swap of assets)
LONDON, Feb 2 (Reuters) - Mobile phone operator Vodafone said on Tuesday it was in talks with John Malone's cablecompany Liberty Global about forming a joint venturein the Netherlands.
Liberty Global owns Ziggo, the largest cable TV operator inthe Netherlands, while Vodafone is the second biggest mobileoperator after KPN.
The two companies were in prolonged talks about combiningassets across various European markets, or a broader merger,last year, but could not agree on valuations.
Vodafone said it was now in talks with Liberty Global aboutthe creation of a joint venture in the Netherlands that wouldincorporate both companies' local operating businesses.
"The discussions are ongoing and do not extend beyond thecreation of a joint venture in the Netherlands," it said. (Reporting by Paul Sandle and Thomas Escritt; Editing byAlexander Smith)
Vodafone (VOD)