|
|
Vodafone Expecting $4.5 Billion Payout from Verizon Wireless
Published on:
Vodafone may be about to receive a second huge payment from its Verizon Wireless subsidiary worth US$4.5 billion. The payout is likely to be approved this week at a board meeting of Verizon Wireless, the Sunday Times newspaper reported without citing its sources.
Vodafone owns 45% of Verizon Wireless, formed from the merger of several smaller US assets the company acquired during the tenure of Sir Chris Gent as CEO.
The US company has not been paying dividends for many years as it pays down debts or acquires other networks - a situation which has lead to some shareholders trying to force Vodafone to sell the asset rather than wait for dividends in the future.
Last year the company made its first dividend payment since 2005, when it distributed US$10 billion to its two shareholders. Two-thirds of Vodafone's share was paid to its shareholders in a special dividend payment.
Although the dividend freeze allowed Verizon Wireless to pay down its debt, the two shareholders have debts of their own to clear.
Verizon Communications has debt outstanding worth US$51 billion, while Vodafone has debt of US$33.5 billion - both figures for the end of March 2012.
On the web: The Sunday Times
Tags: [vodafone] [verizon wireless] [USA]
| |
|
| |
|
| |
|
| |