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A large stake of international telecom service provider Vodafone (NASDAQ: VOD) changed hands late on Thursday, and investors reacted accordingly the next trading day. Friday saw the company's American Depositary Receipts (ADRs) rise by nearly 13% as a result.

The buyer of the Vodafone stake was Xavier Niel, a French entrepreneur and billionaire who founded (and still owns most of) that country's telecom and tech company Iliad. Niel purchased the stake through a family investment vehicle called Vega. The seller was Emirates Telecommunications Group.

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The stake represents around 16% of the company, and the price was just over 112 British pence ($1.50) per Vodafone share.

All told, the purchase price was equivalent to roughly $6 billion and represented a premium of around 13% over the company's most recent closing level -- hence the double-digit bounce in the ADR price the following day. The deal makes Niel/Vega the telecom's largest shareholder.

According to a Bloomberg report on the transaction, it's part of a broader strategy by Niel to hold significant stakes in telecom companies around the world. The Vodafone holding gives him a strong presence in two large European markets: the U.K. and Germany.

The transaction is subject to approval by the relevant regulatory bodies. It is expected to close the end of the year.

This is an intriguing move by a fairly traditional mobile telecom company that hasn't been exciting, operationally or financially, over the past few years. Yet the deal might accelerate the consolidation of the industry, particularly in Europe, so developments on that continent are worth watching for telecom investors.

Personally, I'd stay away from Vodafone ADRs after the rally, as I don't see any catalysts that could deliver a similar price pop anytime soon.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Vodafone Group Public. The Motley Fool has a disclosure policy.

Why Vodafone Stock Rocketed Almost 13% Higher Today was originally published by The Motley Fool