Telecom operator Vodafone said that it is in advanced talks to sell 45% stake of its Verizon Wireless back to the US cell phone provider. The operator is planning to sell stake for $130 billion in cash and stock, in a deal which will be the second-largest on record if it does go through.
If everything works out as planned, then Verizon will own its wireless business outright after it buys the stake back from the British mobile phone company Vodafone PLC. In a statement released on September 1, 2013, Vodafone said that there is no certainty that a final deal will be reached at some point. On the other hand, Verizon Communications declined to comment on the development.
If the agreement is finalized, then this will be second only to Vodafone’s $172 billion acquisition of the Mannesmann AG in 2000. The deal will give additional cash to Vodafone PLC and will also give Verizon Communications the opportunity to boost its quarterly earnings, as it will no longer have to share a portion of the proceedings with Vodafone. The deal is not expected to have much effect on consumers of Verizon.
Vodafone is already one of the biggest cell phone companies in the world and has a goal to dominate media services in Europe as well.
Photo Credits: Turner
