Vodafone values Verizon Wireless stake at USD 130 bln

News Wireless Global 2 SEP 2013
Vodafone values Verizon Wireless stake at USD 130 bln
Vodafone has confirmed the price tag for its 45 percent stake in Verizon Wireless, at USD 130 billion. Responding to press speculation that a deal to sell the stake to Verizon Communications is imminent, the company said in a statement that the payment would be a mixture of Verizon shares and cash. 

People familiar with the matter told the Wall Street Journal that a deal could be announced as early as 02 September. Vodafone would pay about USD 5 billion in tax on the sale, while also receive Verizon's stake in Vodafone Italia, which is valued at about USD 5 billion as part of the payment, the Financial Times reported. The remaining USD 120 billion would be split equally between cash and equity in Verizon, according to the paper's sources.

Categories:

Mobile

Companies:

Verizon Wireless,  Vodafone,  Verizon,  Verizon Communications

Regions:

Global

Countries:

Italy,  United States

Tags:

Voice services, M&A buyouts & divestments

Related Articles

UNITED STATES 21 FEB 2014

Vodafone completes sale of Verizon Wireless stake

Vodafone Group has completed the sale of its 45 percent interest in Verizon Wireless to Verizon in a deal valued at USD 130 billion, following court approval of the transaction. This also sees the company acquire the remaining stake in Vodafone Italia held by Verizon, as part of the purchase price. Vodafone confirmed that the total cash amount to be returned to shareholders will be USD 23.886 billion, equivalent to USD 0.49 for each existing ordinary share. This will be in addition to the distribution of al

UNITED STATES 5 SEP 2013

Verizon to launch LG G2 smartphone from 12 September

Verizon Wireless has announced it will launch the LG G2 smartphone beginning 12 September for USD 199.99 with a new two-year agreement. The LG G2 is equipped with a 5.2-inch full HD IPS display with QSlide, a 13-megapixel camera with optical image stabilisation, a 3,000mAh battery, Dual Shot mode and built-in wireless charging support. In additio,n the G2 is designed with the power and volume buttons on the back of the phone.

UNITED STATES 3 SEP 2013

Vodafone exits US - what will it buy now?

Vodafone has agreed to allow Verizon to buy out its 45 percent stake in their joint venture Verizon Wireless, for USD 130 billion. As part of the deal, Vodafone will also gain 100 percent control of Vodafone Italia. Over 70 percent of the proceeds from the sale, including cash and shares in Verizon, will be handed to Vodafone's shareholders, and Vodafone will also increase its dividend for the current fiscal year. In addition, Vodafone announced plans to invest GBP 6 billion of the proceeds in strengthening

GLOBAL 3 SEP 2013

Vodafone agrees Verizon Wireless sale for USD 130 bln

Vodafone has reached an agreement to sell its 45 percent stake in Verizon Wireless to its US partner Verizon Communications, giving the latter 100 percent control of the mobile operator. Verizon will pay a total USD 130 billion, including USD 58.9 billion in cash, USD 60.2 billion in Verizon shares, USD 5.0 billion in the form of Verizon loan notes, Verizon's 23 percent stake in Vodafone Italia (valued at USD 3.5 billion), and Verizon's assumption of USD 2.5 billion in Vodafone debt related to the US group.

UNITED KINGDOM 2 SEP 2013

MP calls for close look at tax on Vodafone-Verizon deal

The head of the UK parliamentary committee on public accounts has called on tax officials to scrutinise closely Vodafone's pending sale of its stake in US operator Verizon Wireless. This follows reports that that the UK-based company would pay just USD 5 billion tax on the sale worth USD 130 billion, thanks to the use of a Dutch holding company for the US assets. MP Margaret Hodge, who chairs the committee, told the Guardian that HMRC officials should intervene at the earliest opportunity. "HMRC must begin

GERMANY 2 SEP 2013

WSJ: overeenstemming Verizon, Vodafone over mobiele jv

Onderhandelaars van Vodafone Group en Verizon hebben een akkoord bereikt over de verkoop van het belang van Vodafone Group in de joint venture Verizon Wireless voor 130 miljard dollar (98,3 miljard euro). Geen van beide partijen heeft de overeenkomst bevestigd, de informatie komt volgens Wall Street Journal van bronnen die bekend zijn met de materie. Afgelopen week kwam naar buiten dat de Britse operator Vodafone bereid was zijn belang van 45 procent in Verizon Wireless voor 130 miljard dollar aan de Amerik

GLOBAL 30 AUG 2013

AT&T may look at Vodafone bid after Verizon deal - report

AT&T may look at buying part or all of Vodafone, if the UK-based operator completes the sale of its 45 percent in US operator Verizon Wireless, Bloomberg reports. People familiar with the matter said that AT&T is only interested in mobile assets and would be deterred if Vodafone expands in cable and fixed-line businesses. Vodafone earlier confirmed its in talks with Verizon on the stake in their joint venture. These are thought to centre on a price of about USD 130 billion for the stake, people with knowled

UNITED STATES 29 AUG 2013

Vodafone confirms talks to sell Verizon Wireless stake

Vodafone Group confirmed it's in talks with Verizon Communications to sell its 45 percent stake in their US joint venture Verizon Wireless. The company said there was no certainty an agreement would be reached. The statement follows a report in the Wall Street Journal that the two had restarted talks on the deal. Previous talks had broken down over price, with Verizon looking to pay around USD 100 billion for the stake and Vodafone hoping for more like USD 130 billion, people familiar with the matter said.

UNITED STATES 14 MEI 2013

Verizon Wireless to pay USD 7 bln in dividends

Verizon Wireless has approved a dividend worth USD 7.0 billion for its shareholders Verizon Communications and Vodafone. The dividend will be paid on 25 June. Verizon Communications owns 55 percent of the mobile operator, and Vodafone Group owns the remaining 45 percent. Vodafone said its share of the dividend would be USD 3.2 billion (GBP 2.1 billion). The company said it will say more on how it plans to use the cash at its next quarterly results announcement, on 21 May.

UNITED STATES 3 MEI 2013

Verizon pressures Vodafone with dividend threat - report

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

GLOBAL 29 APR 2013

Vodafone shareholders want higher bid for Verizon stake

Six major Vodafone investors said USD 100 billion was not enough for the company's 45 percent stake in US mobile operator Verizon Wireless. Verizon Communications, the other shareholder in the mobile operator, was recently reported to be considering such an amount in a bid for full control of the company. According to Reuters, the Vodafone shareholders would like to see an offer of at least USD 120-135 billion. Should the USD 100 billion figure stand, the six shareholders, with around 1.3 billion of Vodafon

UNITED STATES 25 APR 2013

Verizon plans USD 100 bln bid for Verizon Wireless - report

Verizon has hired advisers to prepare a possible USD 100 billion cash and stock bid to take full control of Verizon Wireless from joint venture partner Vodafone, two people familiar with the matter told Reuters. Verizon, which already owns 55 percent of Verizon Wireless, has not yet put forward a proposal to Vodafone but it has hired both banking and legal advisers for a possible bid, the report said. Verizon hopes to start discussions with Vodafone soon for a friendly deal but is prepared to take a bid pub

UNITED STATES 3 APR 2013

Verizon denies reported Vodafone bid

Verizon has denied any plans to make a bid for or merge with Vodafone. In a SEC filing, the US operator reiterated it was interest in acquiring the 45 percent in Verizon Wireless held by Vodafone. "It does not, however, currently have any intention to merge with or make an offer for Vodafone, whether alone or in conjunction with others," Verizon said. The statement follows a report in the Financial Times that Verizon is preparing a joint bid with AT&T for Vodafone. Verizon would get the rest of its US mobil

Just In

19 DEC 16:42

SLT-Mobitel launches 5G network in Sri Lanka

19 DEC 16:19

Dialog Axiata launches 5G network, connects 1.5 million subscribers

19 DEC 15:56

UK govt to ban AI-enabled nudification apps to protect women, girls

19 DEC 15:42

3 UK launches last-minute Christmas sale

Commentary

13:56

Video market set for slower growth ahead

11:38

Netflix buys Warner Bros to deepen content catalogue

11:11

KPN's mixed performance in Q3 raises questions for strategy day

15:26

Stock markets breaking records but what happened to Odido's IPO plans?

Background

01:04

The week in telecom: Wi-Fi bolt-ons take off to boost broadband growth, video market works on consolidation

01:39

The week in telecom: Netflix wins bidding for Warner Bros, Apple poaches new execs, Samsung debuts trifold

13:51

Proximus vs. Telenet: Proximus performs better in Q3 while Telenet uses up cash

14:16

Proximus Domestic still struggling with low margins

Complete profile

Before downloading the whitepaper, we would like to ask you to complete your profile with company and position. After confirming you will receive the white paper.