Vodafone in Verizon talks to sell stake in joint venture
Print Edition
Vodafone Group PLC (VOD.L) said yesterday it was in talks with Verizon Communications Inc (VZ.N) to sell its 45 percent stake in their US joint venture Verizon Wireless, for what a Bloomberg report said would be about US$130 billion.
Verizon is working with several banks to raise US$10b from each to finance about US$60b of the deal and an announcement could come as soon as September 2, sources said.
The stake in Verizon Wireless, the leader in the US mobile market, has become increasingly valuable to Vodafone as its fortunes have waned in its core European markets.
Chief Executive Vittorio Colao said in May he would stake his reputation on selling the stake at the right time and right price and would not bow to pressure to do any deal.
Vodafone shares jumped 9 percent to a 12-year high of 207 UK pence (US$3.21) on confirmation of talks.
It was reported in April that Verizon had hired advisers for a possible US$100b bid and was contemplating a roughly 50:50 cash and stock offer for the 45 percent stake in Verizon Wireless it does not already own.
At the time, most analysts said the US$100b figure was too low and that the value of the Vodafone holding was nearer US$120b.
A Verizon spokesman declined to comment on the Bloomberg and Wall Street Journal reports.
Vodafone Chairman Gerard Kleisterlee had said last month the company would seriously consider an offer if it offered more value to investors than the current status quo.
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