Verizon wants to buy out Vodafone in wireless venture

Verizon Communications Chief Executive Lowell McAdam has said the company is well positioned to buy out Vodafone Group in their wireless joint venture.

Verizon Communications Chief Executive Lowell McAdam has said the company is well positioned to buy out Vodafone Group in their wireless joint venture.

In an interview with The Wall Street Journal Monday, McAdam said the company's plans to become the sole owner of Verizon Wireless were 'feasible'.

Verizon currently owns 55% of the venture and Vodafone has a 45% stake.

"We have always said we would love to own all of that asset," he said.

Verizon Wireless, formed in 2000, allowed partners to pool assets and share costs when wireless was fairly new.

However there has been a tug-of-war over the business since it has rocketed to epic proportions.

Verizon Wireless made $18.5bn in dividend payouts to the partners in 2012.

Verizon tried to buy Vodafone's holdings in 2006 but was unsuccessful. There have now been murmurings that the companies might unwind the venture and Verizon has voiced its interest as a keen buyer.

There is question, however, as to whether a deal is feasible as the value of the business has been estimated at $100bn.

"I think [a deal] is feasible," McAdam said Monday. "Our wireline business is getting stronger and as that gets stronger, it makes it easier."

Verizon would be able to purchase the interest from Vodafone outright. There are however, many ways Verizon could take over, McAdam said.

To be had in account perhaps, in a research note published yesterday analysts at Citi voiced the possibility that Verizon could launch an offer for Vodafone itself.

Verizon gained 0.88% to $44.69 at 8:55 Monday while Vodaphone rose 2.79% to 164.10p.

RD

Recommended

Has the “jam tomorrow” bubble popped already?
Stockmarkets

Has the “jam tomorrow” bubble popped already?

Fund managers have had a good year so far. John Stepek looks at what to expect from markets until year end.
6 Dec 2021
Three stocks that should profit from the dash for digital growth
Share tips

Three stocks that should profit from the dash for digital growth

Professional investor Christopher Versace of the Digital Infrastructure and Connectivity UCITS ETF picks three digital growth stocks to buy now.
6 Dec 2021
JD Wetherspoon: why investors should head to the pub
Trading

JD Wetherspoon: why investors should head to the pub

Pub group JD Wetherspoon is a solid operator, and is due a bounce when the pandemic eases. Matthew Partridge picks the best way to play it.
6 Dec 2021
Share tips of the week – 3 December
Share tips

Share tips of the week – 3 December

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
3 Dec 2021

Most Popular

Three safe bets on the growing online gambling sector
Share tips

Three safe bets on the growing online gambling sector

Professional investor Aaron Fischer, creator of the Fischer Sports Betting and iGaming ETF, picks three of his favourite online gambling stocks.
29 Nov 2021
Making sense of the new minimum pension age rules
Pensions

Making sense of the new minimum pension age rules

The rules surrounding the minimum age at which you can start tapping into your retirement savings have been tweaked, but are still confusing. David Pr…
23 Nov 2021
Bubbles grow in global property markets as house prices continue to rise
Property

Bubbles grow in global property markets as house prices continue to rise

House prices grew by 6% in the year to mid-2021 in 25 global cities, with the German property market in particular showing signs of overheating.
3 Dec 2021