Vodafone remains open to a Verizon offer for Verizon Wireless stake

Vodafone Chairman Gerard Kleisterlee said his company's board would seriously consider a proposal from Verizon Communications (NYSE:VZ) to buy Vodafone's 45 percent stake in Verizon Wireless if the deal gave Vodafone shareholders more value than they derive now from the partnership.

Kleisterlee said at the company's annual shareholder meeting that there was nothing new to announce about the companies' relationship. "If we see proposals that generate more value for shareholders we will consider them," he told investors, according to Reuters. "There is ongoing communication (that involves) the full board. Both executives and non-executives are involved in those negotiations with Verizon."

Rumors swirled earlier this spring that Verizon would consider a $100 billion bid for Vodafone's stake, which Vodafone has reportedly dismissed as inadequate. Verizon and Vodafone have not commented on the reports, but Verizon executives have made clear that the company is interested in acquiring Vodafone's stake. Verizon Wireless recently paid a $7 billion dividend to the parent companies.

Verizon Wireless has been a bright spot on Vodafone's balance sheet, which has been weakened by poor performances in its core European markets, especially in Southern Europe. Last week Verizon Wireless reported that total wireless revenue clocked in at $20 billion for the second quarter, up 7.5 percent year-over-year. The carrier also added 941,000 postpaid customers during the period.

"There is absolutely nothing that has changed (regarding a sale)" Vodafone CFO Andy Halford told reporters after the meeting. "The discussions we have (with Verizon) are about the business primarily, and the business continues to do very, very well."

For more:
- see this Bloomberg article
- see this Reuters article
- see this Forbes article

Related Articles:
Vodafone to keep Verizon cash, reports revenue decline
Verizon Wireless surprises with $7B dividend to parent companies
Analyst: Verizon's McAdam hints Verizon Wireless won't pay a dividend this year
Report: Verizon talking to analysts to spur Vodafone deal, but Vodafone investors want more
Report: Verizon thinks Vodafone's VZW stake is worth $100B, Vodafone thinks it's $130B
Report: Verizon readies $100B bid for Vodafone's Verizon Wireless stake

Sponsored by ADI

What if we were never truly alone? Our next-gen communications technology can help people in even the most remote places stay connected.

What if there were no ocean, desert, mountain or event that could ever keep us from telling our stories, sharing discoveries or asking for help? ADI’s next-gen communications technology could keep all of us connected.

Suggested Articles

AT&T has shifted its Cricket prepaid brand to a 100% authorized retailer model, according to Wave7 Research.

The FCC decided to extend the timeline for responding to Huawei's application for review until December 11.

All operators are trying to understand the intersection between their networks and hyperscale networks. But who gets the lion's share of the revenue?