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)
Vodafone (VOD -1.3%) is fine with a credit downgrade to BBB+ if that's the price it has to pay to go through with a compelling merger/acquisition, says CFO Andy Halford. That comment is being taken as a sign Vodafone doesn't feel any pressure to sell its 45% stake in Verizon Wireless (estimated value of $110B), which would do plenty to strengthen its balance sheet. Bernstein notes the amount of extra debt needed to produce a BBB+ rating would be enough to finance the purchase of German wireline carrier Kabel Deutschland, which Vodafone is reportedly eying.
Citi is excited by reports of Verizon (VZ +1.2%) attempting to buy out Vodafone's (VOD +1.4%) 45% stake in Verizon Wireless: analyst Michael Rollins has upgraded the carriers to Buy, and states a deal would yield "significant EPS and FCF accretion to Verizon in the first year under most of the scenarios we explored." Others on the Street think likewise.
AT&T (T) could acquire Vodafone's (VOD) non-U.S. assets if reported talks between Verizon (VZ) and Vodafone lead to a merger, thinks BofA/Merrill. Analyst David Barden estimates $70B would be enough for AT&T, which has made its interest in foreign expansion clear, to buy Vodafone's giant collection of international mobile properties. (tower sales)
With its cable spectrum purchases on the books, Verizon Wireless (VZ, VOD) is planning to build 5K 4G cell sites this year in the AWS band, whose airwaves feature less range but more bandwidth than those in the 700 MHz. band where Verizon's 4G buildout has taken place. The expansion suggests Verizon is now focused on improving 4G capacity/speeds rather than coverage (where it has an edge). Separately, Wells Fargo says checks indicate Verizon is taking share from AT&T (T), that both are taking share from Sprint (S), and that Sprint is taking share from T-Mobile.
Vodafone (VOD) and France Telecom's (FTE) Orange unit plan to invest €1B in a fiber-optic cable broadband network in Spain, indicating that the country's fixed-line Internet market is an area of growth despite its dire economic situation, which has caused Vodafone to write off over £16B since 2010. The company's investment appears to be part of a strategy to move into the fixed-line sector across Europe.
EU antitrust regulators are closing a preliminary inquiry into Europe's five largest cellular operators over the development of new technology standards, saying that it's satisfied that the carriers had provided their work to industry associations. The EU had been concerned that Vodafone (VOD), France Telecom (FTE), Telecom Italia (TI), Deutsche Telekom (DTEGF.PK) and Telefonica (TEF) would shut out their rivals.
Verizon (VZ -0.7%) and Vodafone (VOD +1.1%) aren't currently talking about a Verizon Wireless deal, sources tell David Faber. That's not stopping Vodafone from adding to yesterday's gains. Nomura sees an equity-financed deal to buy Vodafone's stake at a $111B valuation lifting Verizon's 2013 EPS and FCF by 19% and 15%, respectively. However, the firm notes Vodafone would have to pay taxes when selling Verizon shares. David Einhorn has been bullish on Vodafone on account of its Verizon Wireless stake.
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)
Leaks about Vodafone's (VOD) buyout interest in German cable operator Kabel Deutschland have "complicated internal discussions" and led Vodafone to put its efforts on ice for now, 3 sources tell Bloomberg. Though Vodafone could still make a bid at some point, there's no longer any timetable, and Kabel could strike a deal with another another carrier in the interim - KPN and Telefonica Deutschland (TEF) are seen as potential partners. Kabel -2.5% in Frankfurt.
Vodafone (VOD) CEO Vittorio Colao continues to act the tease over the carrier's intentions with regards to its 45% stake in Verizon Wireless, telling the WSJ that he doesn't know if the U.S. operator's ownership structure will be the same in a year's time. Verizon Communications (VZ), which owns 55% of Verizon Wireless, would "love" to take control, but the latter provides over half of Vodafone's adjusted operating profit.
The U.K.'s auction of 4G spectrum has raised £2.34B, below the government's expectation of £3.5B and well below the £22B raised in a 3G auction in 2000. Five operators won spectrum, including Vodafone (VOD) with a bid of £791M, Everything Everywhere (DTEGF.PK, FTE) with £589M, Telefonica's (TEF) O2 with £550M, and BT's (BT) Niche with £186.5M.
Vodafone (VOD -2.7%) opens lower in spite of a rally in European markets, thanks to a downgrade to Underperform from Bernstein. Shares are now within striking distance of their 52-week low of $24.95, thanks largely to pessimism about the carrier's European ops.
Vodafone (VOD) buying Kabel Deutschland (KBDHY.OB) would be a sign its wireless-only strategy "is under severe threat" from converged solutions, Bernstein says, implying VOD "may well need to acquire further, expensive, fixed-line assets," and would bode badly for Deutsche Telekom (DTEGF.PK). Firm thinks VOD could look to add wireline assets in Spain, Germany and Italy, but not Liberty Global's (LBTYA).
Vodafone (VOD -2.1%) is reportedly interested in acquiring Kabel Deutschland (KBDHY.OB), which has a market cap of €6.3B after its shares jump 11.4% to €71.15 in Frankfurt following the speculation. It's not the first time Vodafone has looked at buying the cable network operator; any deal would add to the carrier's purchase of Cable & Wireless Worldwide in the U.K.
: I like the idea of a cash+stock deal. Although it's there best asset, I'll probably sell half my shares if it happens.
charles1978+ FollowFollowing- Unfollow|Send Message29 Aug 2013
In london $VOD is 8% up, anyone think the USA VOD stock will do the same in NYC ? Getting ready to shoot if so.
View all 0 replies
VOD vs. ETF Alternatives
Vodafone Group PLC is engaged in providing voice and data communications services for all types of customers. The Company has presence in Europe, the Middle East, Africa, the Asia Pacific region and the United States.