Published in News

Verizon close to buying Vodafone’s stake

by on29 August 2013

Will cost $130 billion

Verizon Communications is in advanced talks to buy Vodafone 45 percent stake in their US joint venture for about $130 billion. 

Verizon is working with several banks to raise $10 billion from each to finance about $60 billion of the deal and an announcement could come as soon as September 2, two of the people told Bloomberg. The Wall Street Journal reported earlier that the companies have restarted talks but it was not immediately clear whether they had resolved disagreements over price or whether Verizon has put forward a specific offer.

In April Verizon had hired advisers for a possible $100 billion bid and was contemplating a roughly 50:50 cash and stock offer for the 45 percent stake in Verizon Wireless which it does not already own. At the time analysts thought that the $100 billion figure contemplated by Verizon was too low and that the value of the Vodafone holding was nearer $120 billion.

It looks like something happened which bought the two sides together, perhaps Vodafone wanted to hold a better Christmas party this year.

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