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Vodafone (VOD) +2.6% after The Sunday Times reports the carrier is "leaning towards making a...

Vodafone (VOD) +2.6% after The Sunday Times reports the carrier is "leaning towards making a clean break" with Verizon (VZ), and that a Verizon Wireless deal could happen by summer. Talks are said to be "fluid and free-form," with Verizon shareholders standing in the way of a full-blown merger out of concerns about Vodafone's European ops. The paper also claims Vodafone execs have privately told investors they can "mitigate or eliminate" Vodafone's capital gains tax bill. (previous)
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Comments (3)
  • Crusader XXI
    , contributor
    Comments (6) | Send Message
     
    I have a position in both stocks.
    Can someone clearly articulate what a Verizon buyout of VOD's 45% ownership will mean? If they agree this summer, when will it most likely consummate?
    Approximately how much will it cost Verizon? What are the likely dividend impact outcomes for holder's of either stock?
    27 Mar 2013, 10:19 AM Reply Like
  • Esekla
    , contributor
    Comments (3100) | Send Message
     
    Crusader,

     

    In short, a simple buyout is unlikely. If it were to happen, there would be a large tax impact and VOD would be doing it in order to plow the funds into large infrastructure investments elsewhere, making a large special dividend unlikely. Note that, unlike the first time, they did not pay one at all the last time they received a dividend from VZW.
    1 Apr 2013, 07:56 AM Reply Like
  • Esekla
    , contributor
    Comments (3100) | Send Message
     
    My article: http://seekingalpha.co... examines the chances of this happening with news updates and follow on discussion indicating people's views on all the possible outcomes in the comment section.
    1 Apr 2013, 07:51 AM Reply Like
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