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Vodafone Agrees To Sell Its 45% In Verizon For $130B

|Includes: Vodafone Group Plc (VOD), VZ

Originally published at

United Kingdom-based Vodafone (NASDAQ:VOD) announced it has agreed to sell back its 45% stake in Verizon (NYSE:VZ) in a deal valued at $130B. The transaction, due to close in the first quarter of 2014, will involve $58.9B cash from Verizon, $60.2B worth of Verizon shares, and $5B in debt. Verizon will also use its 23%, or $3.5B stake in Vodafone to pay for the deal as well as the assumption of $2.5B in debt. This move will give Verizon increased flexibility as the company seeks ways to increase profitability and further its growth. This deal is one of the largest merger-and-acquisition deals of all-time, and demonstrates Verizon's eagerness to gain full control of its company, paying $30B above its original $100B target price that it believed the stake was worth.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.