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Verizon (VZ +0.9%) is bent on taking full control of Verizon Wireless this year, and has even...

Verizon (VZ +0.9%) is bent on taking full control of Verizon Wireless this year, and has even discussed merging with Vodafone (VOD +3.9%) to achieve this goal, Bloomberg reports. Merger talks are said to have stalled over "disagreements on leadership and headquarters location," thus making a buyout or partial sale of Vodafone's 45% stake (estimated to be worth $115B) more likely. One source claims Vodafone is open to using the proceeds to make European acquisitions. (previous)
Comments (10)
  • Derek A. Barrett
    , contributor
    Comments (3534) | Send Message
     
    Was wondering what was going on.

     

    Long VOD, also selling puts at 25
    5 Mar 2013, 01:21 PM Reply Like
  • gsterling
    , contributor
    Comments (681) | Send Message
     
    I'd love a merger. That said anything to unlock some value in VOD would be nice. As much as it's up today I'm still down 1% from where I bought it. I still think it is trading at a 20 - 25% discount from where it should be.
    5 Mar 2013, 01:46 PM Reply Like
  • Energysystems
    , contributor
    Comments (1137) | Send Message
     
    Personally, wouldn't like the merger. That'd make VOD get saddled with deep legacy issues due to those VZ landlines. Just check Verizons non-Wireless numbers. Doesn't makes sense unless VZ can get rid of that anchor of a wireline division. As for a sale of the 45% wireless stake, I'd sell my VOD shares.
    5 Mar 2013, 02:10 PM Reply Like
  • MustangMajor
    , contributor
    Comments (102) | Send Message
     
    I agree with Energysystems. If VOD no longer owns the stake in
    VZ Wireless, I'm not sticking around. I made the choice of VOD
    two years ago when both were about equal in price ~$28, but the
    VOD divided was higher. But with the current share price and VZ
    paying Q dividends twice that of VOD, that was a bad choice. I
    will hold what I own for now to see what happens, but I don't think
    VOD will agree to sell unless VZ makes a insane offer. Always
    drama, sigh...
    5 Mar 2013, 03:47 PM Reply Like
  • Derek A. Barrett
    , contributor
    Comments (3534) | Send Message
     
    I like the move away from North America so they can focus more on Europe and emerging markets like Africa

     

    Africa is popping like crazy and has plenty of upside
    5 Mar 2013, 03:48 PM Reply Like
  • Veritas1010
    , contributor
    Comments (1578) | Send Message
     
    I agree with your Africa analysis, but is VOD's management judicious enough to handle that amount of money successfully?

     

    I do wonder.

     

    long: VOD, but awaiting the next ACT of the play...
    5 Mar 2013, 09:13 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (6290) | Send Message
     
    Think VOD would be wise to cashout at least a portion of the VZ wireless stake and snap up bargains all across the globe. The ultimate sell high, buy low on a corporate level.
    5 Mar 2013, 03:57 PM Reply Like
  • Derek A. Barrett
    , contributor
    Comments (3534) | Send Message
     
    Agree 100%, I think it would be a great move
    5 Mar 2013, 05:29 PM Reply Like
  • Esekla
    , contributor
    Comments (3125) | Send Message
     
    The blurb somewhat misstates the character of the original report, which actually confirms that no talks are currently taking place and that recent talks just highlighted the barriers more than an impending solution. They've been talking since the turn of the millenium. I submitted an article a month or two ago detailing the history and explaining why it's now more unlikely than ever that Verizon will simply buy out Vodafone's stake. The SA editors gave a vague response about wanting a fuller bio, rather than publish it. This is just rehash of old news from back then.
    5 Mar 2013, 04:53 PM Reply Like
  • Veritas1010
    , contributor
    Comments (1578) | Send Message
     
    I also agree with you too Esekla, a merger for example will never occur for reasons we've discussed here in SA ad nauseam.
    5 Mar 2013, 09:17 PM Reply Like
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