Vodafone nears deal for Verizon [Khaleej Times (United Arab Emirates)]
(Khaleej Times (United Arab Emirates) Via Acquire Media NewsEdge) British mobile phone giant Vodafone neared a $130 billion deal to sell its US joint-venture stake to partner Verizon in a blockbuster deal that could change the face of the global telecom sector.
The blockbuster deal — which would be one of the biggest transactions in corporate history — would allow Vodafone to bounce back from hefty losses, pay down debt, make new acquisitions and return money to shareholders, according to analysts.
It would also mark the group's exit from the United States market and inject several billion euros into the British economy that is struggling to lift out of the doldrums.
The company's share price jumped 3.76 per cent to 214 pence in afternoon trading on Monday.
Vodafone confirmed late on Sunday it was in "advanced" talks to sell its 45 per cent holding in Verizon Wireless to Verizon Communications in a vast deal worth the equivalent of €98.5 billion or £84 billion.
The Financial Times, citing sources close to the situation, said that both sides had agreed in principle to the Verizon Wireless deal, while Verizon management would meet later on Monday to approve the purchase.
Both Verizon and Vodafone declined to comment further on the matter, when approached by AFP.
The gigantic buyout would be the second-biggest merger and acquisition deal in global corporate history, according to data firm Dealogic.
The world's biggest merger and acquisition deal remains Vodafone's purchase of Germany's Mannesmann for $172 billion including debt, in 1999.
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