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 (4641) | 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 (2229) | 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 (2112) | 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 (2229) | 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 (3249) | 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 (4641) | 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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