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Verizon's (VZ +0.8%) decision to let Verizon Wireless make a $7B distribution, rather than play...

Verizon's (VZ +0.8%) decision to let Verizon Wireless make a $7B distribution, rather than play hardball with Vodafone (VOD +0.3%), "smacks of stalemate" in Verizon's efforts to buy Vodafone's 45% stake, writes Bernstein's Robin Bienenstock. "In effect, Verizon is betting that Vodafone will be under more pressure to sell at a lower price next year because of Vodafone's own poor operational trends." Past reports suggest the gap between Verizon's initial bid and Vodafone's initial asking price could be $30B.  (previous)
Comments (3)
  • C. William Jones
    , contributor
    Comment (1) | Send Message
     
    I am a retired Verizon Managing Director who formed an advocacy organization now named the Association of BellTel Retirees Inc. We now have 128,000 members, two law suits against Verizon as well as numerous proxy proposal victories that have caused changes in corporate governance and policy.

     

    We are very interested in the Vodafone transaction. While Verizon Wireless is the source of both the growth and profit for Verizon, I am concerned as to how much they can afford to spend on buying out Vodafone's interest in the wireless business. Those numbers are huge!
    14 May 2013, 03:03 PM Reply Like
  • STREETRE2
    , contributor
    Comments (190) | Send Message
     
    Yep, it is a lot. Guess it depends on ROI. However to your point there are a lot of other solid companies they could buy for less, then they would stay handcuffed to VOD. Yet as they always say, if it ain't broke don't fix it.
    14 May 2013, 04:33 PM Reply Like
  • Ruckusfan
    , contributor
    Comments (24) | Send Message
     
    I am an employed VOD shareholder. I am very interested in the Vodafone transaction. I wrote the company (VOD) to let them know my opinion that the 45% holding in VZW is a great investment, they should keep it. However, if VZ really wants 100% they should be willing to pay greater than fair value - there has to be an inducement / premium / bonus.
    15 May 2013, 10:36 PM Reply Like
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