Vodafone Denies Verizon Takeover Talks

There are rumours that Verizon Wireless is considering a hostile bid for the rival network, Sprint. While The Wall Street Journal reported that Vodafone, a 45% shareholder in Verizon Wireless has approved the takeover bid, a Reuters report later in the day had a Vodafone spokesperson denying this.

"There have not been any discussions, and we are not in discussions, with Verizon about any offer for Sprint," a company spokesman told Reuters.

Sprint is itself nearing a merger with rival Nextel so the move could be preemptive by Verizon to prevent the merger.

A merger of SprintPCS and Verizon Wireless would make sense as both companies operate CDMA networks while Nextel operates an iDEN system that is incompatible with the CDMA system. However, Nextel has been reported to be considering migrating its network to a CDMA base to take advantage of the cheaper infrastructure and wider roaming services that would become available.

A successful takeover would create a company with some 65 million customers - overtaking the recently merged AT&T Wireless/Cingular which has some 47 million subscribers.

The move would however result in Vodafone facing either a significant reduction in its shareholding in Verizon Wireless or a potential US$40 billion contribution to the takeover in order to maintain its holding."

Posted to the site on 15th December 2004