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'.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"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
-
NS&I raises interest rates on British Savings Bonds – are they any good?Savers can access inflation-beating rates on NS&I's British Savings Bonds but there are better deals on offer in the wider market.
-
'I've used my annual ISA allowance. How can I shield my savings from tax?'As millions face paying tax on savings interest, we explore how to protect your money from the taxman. If you've used up your ISA allowance, we look at the other tax-efficient options.
