Verizon says will not pay a premium for Vodafone stake

Reuters – In a note to clients, analyst Philip Cusick said Verizon boss Lowell McAdam had said he did not believe a premium would be required to buy Vodafone‘s 45 percent stake in the highly successful Verizon Wireless business, because Verizon already had control through its 55 percent holding.

Lowell McAdam also indicated to the JP Morgan team that the two owners could face a “lean” year in terms of the dividend they receive from the Verizon Wireless asset, a move which could increase tensions between them. more> http://tinyurl.com/bwkzpd8

Verizon Deal With Vodafone Could Be Worth More Than $130B, Would Create Largest U.S. Carrier

By Agustino Fontevecchia – a deal could come at a price of between $130 and $137 billion, and would create the largest U.S. phone operator, leaving AT&T T +0.13% behind.  To go ahead with the transaction, not only will Verizon’s chief executive Lowell McAdam have to convince his British counterparts at Vodafone to sell for less than they want to, but he will also have to raise a lot of cash, issuing possibly $120 billion in debt and stock.

Management on both side have begun the valuation fight. more> http://tinyurl.com/cudewwq

Related>

• Verizon seen having clear path to funds for Vodafone deal, Natalie Harrison and Danielle Robinson, Reuters
• Vodafone Shareholders Want Verizon Talks to Start at $120 Billion: Report, Michelle Maisto, eWeek

Verizon beats estimates and raises Vodafone pressure

By Sinead Carew – Verizon Communications Inc posted a higher-than-expected quarterly profit on the performance of its wireless business, which reined in costs without slowing growth.

Verizon also ramped up the pressure on Vodafone Group Plc, which owns 45 percent of the Verizon Wireless unit.

“It just feels like they’re tightening the circle around their customers,” Evercore analyst Jonathan Schildkraut said, referring to Verizon’s ability to retain customers and add more devices through its data share plans. more> http://tinyurl.com/cw4t6gc

Related>

• Verizon rakes in wireless service fees in first quarter; shares hit 12-year high, Associated Press/Washington Post
• Verizon’s new phone upgrade policy draws scrutiny, Roger Cheng, CNET News
• iPhone Activations Rise 25% at Verizon, Account for 55% of New Smartphones, Eric Slivka, Mac Rumors
• Wireless Fees Drive Verizon’s Earnings Beat, CNBC

Vodafone vs Verizon -a battle of attrition

By Richard Blackden – On February 11, 2000, Vodafone sealed the then largest takeover in corporate history with its £112bn capture of German rival Mannesmann.

While Vodafone and Verizon have jockeyed for position over the future of Verizon Wireless since its creation, it is hard to find anyone who disputes that the American company now enjoys the stronger hand. more> http://tinyurl.com/d3rzxqx

Implications Of The Deal Between Vodafone And Verizon

Alpha Hunter – Verizon Wireless is the largest mobile network operator in the US. It provides wireless services to 115.78 million subscribers and was able to add 2.442 million subscribers to its network in the 4th Quarter of 2012,

Verizon Communications (VZ) is a provider of communication, information, entertainment products and services to consumers, businesses and governmental agencies. The company currently operates in two segments, Wireless and Wireline. In the wireless segments the company primarily operates under the brand name of Verizon Wireless and this segment contributes to more than 66% of the company’s revenues and a large portion of the company’s Operating Income.

As the company’s wireline segment continue to contract, is becoming more dependent on Verizon Wireless.

Vodafone provides voice and data communication services to both consumers and businesses and is one of the largest telecom companies in the world. VOD has significant presence in Europe, Middle East, Africa, Asia Pacific region and the United States. The company has achieved a stable growth in revenues and service subscribers over the years. more> http://tinyurl.com/bu8m664

Related>

• No wonder Vodafone investors are excited: Verizon deal would be the big one, Nils Pratley, guardian.co.uk
• Should Vodafone Sell Verizon Or Should Verizon Buy Vodafone? Tim Worstall, Forbes
• Vodafone’s Colao scans Verizon for U.S. solution, Kate Holton, Chris Vellacott and Sinead Carew, Reuters