0
Mobile & Wireless

Verizon pressures Vodafone with dividend threat - report

Friday 3 May 2013 | 11:26 CET | News
Verizon CEO Lowell McAdam said the operator's priority for cash is paying off debt coming due rather than pay-outs to shareholders. The comments, reported by the Wall Street Journal from an investor meeting, appear aimed at putting pressure on Vodafone to consider Verizon's proposal of selling its 45 percent stake in their joint venture Verizon Wireless. 

Specifically, McAdam said the priority for Verizon Wireless's cash flow will be to pay down the USD 5 billion in debt coming due by mid-2014 before making pay-outs to owners. The comments were reported in a note by JP Morgan Chase analyst Philip Cusick, who hosted the meeting 30 April, and confirmed by a person familiar with the matter to the paper. 

Verizon and Vodafone have clashed frequently in the past over the timing and size of dividends from the joint venture. The US carrier withheld payments for over five years until about two years ago, when Verizon Wireless agreed to distribute USD 10 billion to its two owners. Vodafone declined to comment on the remarks about the payout. 

At the meeting with investors, McAdam said the company remains interested in buying Vodafone's stake in Verizon Wireless but doesn't believe a premium is warranted. Verizon already controls the venture, and Vodafone's options for selling the stake are limited to selling to Verizon or an IPO, McAdam said. 

The CEO also told investors that the company could look to international investments or acquisitions as another way to provide growth over the long term. Verizon played down the prospect of doing a big acquisition, saying instead that it could look to establish beach heads in ways that take advantage of the company's global internet backbone and data centres around the world.



Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Categories: Mobile & Wireless
Companies: Verizon / Verizon Wireless / Vodafone
Countries: United States
::: add a comment

Add comment

We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the Telecompaper website, they in no way represent the opinion of Telecompaper.






39%
Ziggo grows to 39% of broadband revenues
Netherlands  |  2015 Q3

Calendar   /   Industry Events

09 Feb Com Hem Q4 2015
09 Feb Opera Software Q4 2015
09 Feb Allot Communications Q4 2015
09 Feb Limelight Networks Q4 2015
09 Feb Akamai Technologies Q4 2015
09 Feb Calix Q4 2015
09 Feb Telekom Austria Q4 2015
09 Feb KDDI fiscal Q3
09 Feb Nuance Communications fiscal Q1
09 Feb Iot Data
09 Feb ТB Forum powered by Intersec 2016
10 Feb CenturyLink Q4 2015
10 Feb Telenor Q4 2015
10 Feb Telenet Q4 2015
10 Feb Twitter Q4 2015
10 Feb America Movil Q4 2015
10 Feb ARM Q4 2015
10 Feb Softbank fiscal Q3
10 Feb Cisco fiscal Q2
10 Feb Aviat Networks fiscal Q2
10 Feb Zynga Q4 2015
10 Feb Millicom Q4 2015
10 Feb IoT Tech Expo
11 Feb Nokia Q4 2015
11 Feb Nextgentel Q4 2015
11 Feb Verisign Q4 2015
11 Feb FireEye Q4 2015
11 Feb Pandora Q4 2015
11 Feb Infinera Q4 2015
11 Feb Redknee Solutions fiscal Q1
::: More Calendar Items