Verizon Communications quelled rumors about an imminent deal to buy out Vodafone Group's stake in its wireless business. Verizon doesn't want to pay the premium amounts that analysts are placing on the company. Verizon CFO Doreen Toben said during a Morgan Stanley analysts conference that analysts' estimates of the value of Verizon Wireless are well above the premium Verizon wants to pay. She said that Verizon would be "willing to consider paying what we reflect is the fair value." Toben said she is studying what Verizon Wireless is worth, factoring in its multiples during the next few years and looking at whether a purchase would add to earnings in the first year. Analysts have placed a value of as much as $50 billion on Verizon Wireless. It appears Verizon wants to pay somewhere around $38 billion.
To read more about Verizon's comments regarding its wireless business:
- take a look at this report from Dow Jones