Vodafone Considering Mega-bid for Verizon

Vodafone, having officially confirmed that it is monitoring the AT&T Wireless takeover bid is now rumoured to be considering a blockbuster takeover of the entire of Verizon Communications, with the goal of taking control of its cellular subsidiary, Verizon Wireless. The Wall Street Journal said that Vodafone has explored the plan, which could cost the company upwards of US$150 billion.

Vodafone currently owns 45% of Verizon Wireless, and if past form is to be believed, would sell of the landline division of Verizon as soon as possible. This would leave the company with a probable final bill of around US$60 billion for the wireless company.

Neither Vodafone nor Verizon would comment on the report, adding that, according to unidentified investment bankers, Vodafone would find it hard to raise the necessary cash and might also have trouble selling the fixed-line business."

Posted to the site on 11th February 2004