Verizon Preparing $100B Bid For Vodafone’s Verizon Wireless Share
Talks about Verizon having plans to buy out Vodafone’s 45 percent share of Verizon Wireless are not new, but it might happen sometime in the near future, at least according to Reuters. Verizon is said to be preparing a $100 billion cash and stock bid to take full control of the biggest US wireless carrier.
Apparently, Verizon, which owns 55 percent of Big Red, has hired bank and legal advisers to prepare the bid and the matter is expected to be discussed by Verizon’s board in the coming week before their annual shareholder meeting. They are hoping to end up in a friendly deal, but if Vodafone is not interested in an agreement, Verizon could take a bid public.
As for the $100 billion, Verizon is planning to raise $50 billion in bank financing and come up with the rest with its own shares.
So far there hasn’t been any confirmation from Verizon, and Vodafone has declined to comment. But that big amount probably won’t be enough for buying out Vodafone’s stake in Verizon Wireless, which is the most profitable part of Verizon. And Verizon saw almost $2 billion in profit in Q1 2013.