Slated Vodafone Group Plc (NASDAQ:VOD) Verizon deal, the biggest on the horizon

Posted by sara Frank August 30, 2013 0 Comment 914 views

Verizon is currently in talks to acquire U.K partner Vodafone Group Plc (NASDAQ:VOD)’s 45% in Verizon Wireless. This might just prove to be the biggest deal in over ten years. The discussions are in an advanced stage and the deal will be in the $130 billion range said some people in the know. Verizon is working with numerous banks in an effort to raise $10B from each of them, or at least enough to finance around $60B of the buyout. The people who have provided this information choose to remain anonymous as the talks are private. Sources have said that the 2 companies may make an announcement early next week.

The wireless future

This particular acquisition will give Verizon complete ownership of the most-profitable telecommunication company. This will mark the end of a partnership that lasted for over ten years and one that had paid literally billions in dividends to VOD. Verizon shares rose 2.7% on the news while VOD shares rose by 8.13%. This has been their highest price since the year 2002. Prominent analysts are saying that Verizon wants to be in total control of its destiny and this is a sign that wireless is what the future is all about.

The biggest deal

At $130B which amounts to almost the total market value of Verizon, this deal is slated to be the biggest one since 2000, when Vodafone acquired Mannesmann AG. This will give the finances of the U.K carrier a big boost. Vittorio Colao, the chief executive officer has been making humungous efforts to resuscitate the company’s European businesses which have been bruised very badly by the economic downtrend in the country.

There is a possibility that Verizon might sell back the 23% stake in Vodafone Italia. This deal may be worth around $5.3B. Vodafone has said that there is no certainty that this deal will actually be closed and that discussions are in progress.

About sara Frank

Sara Frank is our chief congressional correspondent, Sara has covered the presidential campaign, Congress and congressional campaigns. Prior to that, she covered the U.S. House. Sarahas also worked covering the House, Senate and campaign finance. Among the numerous honors she has received for his reporting, Sara is the recipient of an Emmy Award from The National Academy of Television Arts and Sciences. She was also nominated four times for a national Cable Ace Award.

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