Vodafone’s $130bn deal

Mobile-phone giant Vodafone has sold its stake in Verizon - the biggest deal for a decade.

Vodafone has sold its stake in Verizon Wireless for $130bn (£84bn). In the world's biggest deal for a decade and the largest since Vodafone's $172bn acquisition of Germany's Mannesmann the mobile giant disposed of its 45% holding in the US mobile network to joint venture partner Verizon Communications. Vodafone will return £54.3bn to shareholders in one of the biggest ever payouts from a corporate asset sale. Shareholders will receive 112p a share in the first quarter of 2014 in cash or shares. Vodafone will use the remaining funds to invest in its network and pay off debts.

Despite criticism from Margaret Hodge, the chair of the Commons Public Accounts Committee, the transaction will not be liable for UK tax. Vodafone shares rose 9% on the initial bid talk.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

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

Sign up
Explore More

Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.