Vodafone plans mega sale of Verizon Wireless stake [Khaleej Times (United Arab Emirates)]
(Khaleej Times (United Arab Emirates) Via Acquire Media NewsEdge) Vodafone is in talks on a possible sale of its stake in US joint-venture Verizon Wireless said to be worth more than $100 billion, the British mobile phone giant announced on Thursday.
While Vodafone stressed that any deal to sell its 45 per cent stake to US telecommunications group Verizon may well not be concluded, investors dived in to buy the British company's shares.
A deal would help Vodafone, which is looking to bounce back from hefty losses, to pay down its debt, allow it to consider making further acquisitions and to return money to shareholders, analysts said.
"Vodafone notes the recent press speculation and confirms that it is in discussions with Verizon Communications Inc. regarding the possible disposal of Vodafone's US group whose principal asset is its 45 per cent interest in Verizon Wireless," Vodafone said in a statement.
"There is no certainty that an agreement will be reached," Vodafone added in a short release to the London Stock Exchange.
The Wall Street Journal, citing people familiar with the matter, reported on Wednesday that Verizon and Vodafone had resumed talks over a deal that could cost Verizon in excess of $100 billion (€75 billion). Verizon has been looking to pay about $100 billion for the stake, while Vodafone is seeking around $130 billion, the Journal added.
Vodafone's share price surged on the news, topping London's FTSE 100 index in early deals with a gain of 9.1 per cent to 206.5 pence. The overall index was up 0.63 per cent at 6,470.37 points. "A disposal around $130 billion is a transformational fortune changing deal which is likely to see Vodafone become the new darling of the telecom sector," said Joe Rundle, head of trading at ETX Capital.
In May, Vodafone reported a 90-per cent plunge in annual net profit after taking a vast impairment charge relating to poor business in debt-laden eurozone nations Italy and Spain.
(c) 2013 Khaleej Times. All Rights Reserved. Provided by Syndigate.info an Albawaba.com company
[ Back To Technology News's Homepage ]