Vodafone Mulling $160 Billion Verizon Takeover Bid
Published on: 16th Jul 2007
Note -- this news article is more than a year old.
LONDON (Dow Jones) Vodafone Group has been considering a USD160 billion bid for USA partner Verizon Communications although it has not yet approached the company and a bid may not yet emerge the Financial Times reports on its Alphaville Web site Monday.
Vodafone was not immediately available for comment.
The deal would be aimed at putting an end to criticism around Vodafone's 45% stake in U.S. mobile phone firm Verizon Wireless, currently under the spotlight after a small group of shareholder activists called for Vodafone to deliver better value from the unit, says the FT Web site.
The plan has been discussed in recent weeks as Vodafone has considered whether to trigger a little-known put option it holds over part of its stake in Verizon Wireless - a move that, accompanied by an asset revaluation at the American company, could allow it to suck up to $20 billion out of Verizon and distribute this to its shareholders, FT Alphaville said.
The Web site says such a deal would create a business capitalized at around $300 billion - bigger than AT&T, currently the world's largest telecoms business.
Newspaper Web site: http://ftalphaville.ft.com
-London Bureau, Dow Jones Newswires; +44 (0)20 7842 9320
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