Vodafone in talks with Verizon to sell its stake

LONDON - Reuters

Vodafone is in talks with Verizon to sell its 45 percent stake in their US joint venture Verizon Wireless, worth reportedly $130 billion. REUTERS photo

Vodafone Group said Aug.29 that it was in talks with Verizon Communications Inc to sell its 45 percent stake in their U.S. joint venture Verizon Wireless for what a Bloomberg report said would be about $130 billion.

Verizon is working with several banks to raise $10 billion from each to finance about $60 billion of the deal and an announcement could come as soon as Sept. 2, two sources told Bloomberg.

In April, Verizon had hired advisers for a possible $100 billion bid and was contemplating a roughly 50:50 cash and stock offer for the 45 percent stake in Verizon Wireless it does not already own. At the time, most analysts said the roughly $100 billion figure contemplated by Verizon was too low and that the value of the Vodafone holding was nearer $120 billion.

The Wall Street Journal said significant shifts in financial markets, such as rising interest rates as well as changes in the U.S cell phone business had brought the two sides closer together. A Verizon spokesman declined to comment on the Bloomberg and Wall Street Journal reports.

Vodafone Chairman Kleisterlee said last month they would seriously consider any offer for its stake in Verizon Wireless if it offered more value to investors than the current status quo.