Vodafone Confirms Talks About Stake Sale In Verizon Wireless
Bloomberg also reported late on Wednesday that Verizon could pay as much as $130 billion and is working with several banks to raise $10 billion from each to finance about $60 billion of the deal. It said an announcement could come as soon as Sept. 2, citing two unnamed sources.
Reuters reported in April that Verizon had hired advisers for a possible $100 billion bid, an opening gambit that analysts and investors said was too low, putting the value of Vodafone's holding nearer $120 billion.
The statement from Vodafone on Thursday confirming talks sent its shares up 9 percent to a 12-year high of 207 pence as investors and analysts said a deal could finally be on the cards. Shares in Verizon rose 4 percent in New York.
As U.S. growth slows, because most of the U.S. population already own Smartphones, and competition intensifies, Verizon is under pressure to find ways to keep growing. Despite the steep deal prices being discussed, Verizon investors expect handsome rewards from full Verizon Wireless ownership.
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