Verizon and AT&T to divide Vodafone between themselves
According to a new rumour from the mobile world, Verizon and AT&T may be working together and with a common aim – to acquire Vodafone, the second most significant carrier in the world (the first is China mobile). If the companies reach an agreement and the deal is signed, Verizon and AT&T will pay through the nose – 260 pence per share or $3.93 in US dollars.
According to the specialists from Financial Times, Vodafone will cost the two companies $245 billion and this is 40% premium on the share price of the company. The deal, if even started, will be rather complex. Verizon will acquire 45% of Vodafone, or in other words, the stake of the company in the United States. The other part of Vodafone’s business, which is outside the USA will be possession of AT&T. Working together may turn beneficial for the carriers as there will be some strict regulatory hurdles that can be avoided more easily in a team. Moreover, the risk of the deal is big enough, so the companies will share it, too.
Vodafone has about 403 million customers and is established in a number of countries as a leading carrier. It’s presence in Europe is quite strong and this is one of the reasons why AT&T is so attracted to it – we know that the US carrier has longed to set food on the Old Continent for a long long time. Verizon, on the other hand, is looking forward to operating alone without being regulated by Vodafone.
Earlier there have been rumours that Verizon is looking for a way to break up with Vodafone. In fact, a last-month report suggested that Vodafone and Verizon are considering different options, for example merging or separating. None of the ideas was seriously negotiated or taken in consideration, though. There are no official comments or statements from the companies related to this rumour. However, we would like to hear your opinion, so feel free to comment!
Source: CNET
