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Vodafone confirms talks to sell 45% stake in Verizon Wireless

  • Vodafone (VOD) has confirmed reports that it's in discussions with Verizon Communications (VZ) over the sale of the U.K. carrier's 45% stake in Verizon Wireless to the U.S. company.
  • Other than saying that "there is no certainty that an agreement will be reached," Vodafone provided no further details.
  • Bloomberg reported that the sides are in advanced talks over a $130B deal. (PR)
  • Vodafone shares are +8.1% in London.
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Comments (7)
  • Esekla
    , contributor
    Comments (3100) | Send Message
     
    This seems to be a duplicate Market Current: http://seekingalpha.co...

     

    The significant thing here is that this story is sourced from Vodafone, rather than Verizon. It looks like history may finally NOT repeat itself:
    http://bit.ly/17mHUeq

     

    but the real question is, what would Vodafone do with all that cash? If it's not this: http://bit.ly/17qlqJE Then look for things to suddenly improve with the Indian government, though I wouldn't trust that to last.
    29 Aug 2013, 03:28 AM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    How would Verizon look with all of that debt? and the ensuing debt service?
    29 Aug 2013, 04:59 AM Reply Like
  • Energysystems
    , contributor
    Comments (1123) | Send Message
     
    According to WSJ, Verizon has lined up 6, 10 billion dollar loans from various banks, and may intend to pay the balance in Verizon shares. It'll be a big pile of debt, but Verizon Wireless is a cash cow. Just the last few special dividends combined was roughly 20B.
    29 Aug 2013, 07:31 AM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    I think the debt service will be massive and if stock is the vehicle for purchase the dividend and EPS will likely suffer. I think!
    29 Aug 2013, 08:00 PM Reply Like
  • marcomarcomarco
    , contributor
    Comment (1) | Send Message
     
    What are the prospects for VOD moving ahead?
    29 Aug 2013, 11:27 AM Reply Like
  • Veritas1010
    , contributor
    Comments (1562) | Send Message
     
    To me this is the question for VOD. The loss of VZ wireless I see as critical, is this time to bail?

     

    Would appreciate intelligible analysis here...
    29 Aug 2013, 11:30 AM Reply Like
  • Esekla
    , contributor
    Comments (3100) | Send Message
     
    It depends on what they will do with the cash. See my comments and linked article above.
    29 Aug 2013, 10:36 PM Reply Like
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