Dallas, Texas 08/30/2013 (Financialstrend) – Verizon Communications Inc. is making discussions to get hold of United Kingdom associate Vodafone Group Plc (ADR) (NASDAQ:VOD)’s 45% equity stake in Verizon Wireless in what would be the largest transaction in over a decade.
Both the carriers are in advanced talks regarding a sale of the holding for around $130 billion, as per individuals with info of the matter. Verizon is functioning with several banking institutions to lift up $10 billion from each, or enough to fund around $60 billion of the takeover, two of the sources added, asking not to be named as the discussions are confidential.
The acquirement would provide Verizon complete possession of the most moneymaking mobile phone firm, ending an affiliation of over a decade, which has paid billions in bonuses to Vodafone. Verizon scrip climbed 2.7%, and Vodafone gained 8.2% to its peak value since the year 2002.
“Verizon wishes to be entirely in control of its own fate,” stated Jan Dawson, chief telecommunications market expert with NY office of London-based research company Ovum. “This is basically acknowledgment that wireless is the future.”
At $130 billion — approximately Verizon’s complete market value — the transaction would be the largest since Vodafone’s acquirement of Mannesmann AG in the year 2000 and would provide the U.K. carrier’s funds an enhancement as CEO Vittorio Colao, 51, tries to perk up its European biz groups hurt by the area’s debt disaster.
Vodafone Group plc scrip touches 12-year peak
Scrips in UK telecommunications giant Vodafone Group hits a 12-year peak as it announced that US mobile giant Verizon Communications Inc (NYSE:VZ) has reignited discussions on the sale of its 45% equity stake.
The Vodafone scrip zoomed more than 9 per cent on authentication of the discussions, to a 12-year peak of 207p, the report added up.