Verizon Communications, In Move To Gain Sole Ownership Of Verizon Wireless, Ready to Bid $100 Billion For Vodafone's 45% Of Verizon Wireless: Report

  @angeloyoung_a.young@ibtimes.com on April 25 2013 8:31 AM
Verizon Wireless
A man looks at his phone as he walks past a Verizon Wireless store in New York, July 30, 2009. Reuters

Verizon Communications Inc. (NYSE:VZ) is reportedly poised to pitch a $100 billion cash and stock offer to take full control over the lucrative Verizon Wireless from the world’s second-largest telecom company, Britain’s Vodafone Group PLC (LON:VOD).

The New York-based telecommunications holding company currently owns 55 percent of Verizon Wireless, the nation’s largest mobile services provider, but it has had its eyes set on taking full control over its most profitable segment.

The company has hired advisers to prepare the bid, according to anonymous sources that spoke to Reuters in a report published Thursday. Previous figures had been as high as $115 billion, excluding a $20 billion capital gains tax. The deal would be split 50-50 between cash and Verizon stock, which has climbed to a level not seen since 2002.

Vodafone Chief Executive Vittorio Colao has said in the past he’s open to a deal, which would spin off a significant portion of Vodafone’s value thanks to the European economic slump that has battered its performance there. The Italian executive has made streamlining operations while aggressively expanding the company’s global presence his top priorities.

Taking full control would give Verizon Communications access more flexibility. It would have full access to the wireless company’s cash flow.

Vodafone’s stock rose £5.15 ($7.95) or 2.67 percent to £198.40 in London.

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