Dallas, Texas 12/13/2013 (FINANCIALSTRENDS) – Verizon Communications Inc. (NYSE:VZ) has the distinction of being tracked by both the S&P 500 index and the Dow Jones Industrial Index. Yesterday it was reported that the major telecom provider has decided to settle for a negotiated agreement with an investor Natalie Gordon who had taken the company to court with regards to the impending $130 billion deal which will allow Verizon Communications Inc. (NYSE:VZ) to buy back 45 percent of the stake from competitor Vodafone Group Plc (ADR) (NASDAQ:VOD).
As per initial news reports which have been published by business magazine Bloomberg, Verizon Communications Inc. (NYSE:VZ) was boxed into a corner ever since it got a go ahead from Federal Communications Commission (FCC) for its deal with Vodafone. In order to go ahead and consummate the deal for which Verizon Communications Inc. (NYSE:VZ) had been attempting to buy back stake for the past 10 years, the troublemaking investor has apparently been bought out by the telecom services provider.
Verizon Communications Inc. (NYSE:VZ) is a $137 billion market capped holding which operates subsidiaries providing services like “communications, information and entertainment products”. Its operations are primarily divided into two stand alone segments. These are Verizon Wireless and Wireline Services. When trading was suspended for the day yesterday the stock was trading at $48.13 per share which was 9.46 percent below its prior 52 week high price points.
Investors in the stock would be hoping that with this good news the stock might be able to post substantive gains going forward. Over the past one month the stock of this telecom major has shed close to 4.05 percent and has been a underperformer even over the past 180 day period. With the stake buyback providing management with complete oversight on the operations of the firm going forward, its investors would be hoping to see the stock move forward with more impetus soon.