Vodafone, Verizon in $130-B joint venture

Rappler.com

MERGED. A picture taken on September 2, 2013 in Paris, shows an illustration made with the logo for Verizon Wireless and the logo of mobile network provider Vodafone. AFP / Lionel Bonaventure

US telecoms giant Verizon and Vodafone announced they had agreed the British company would sell out its 45% stake in their joint venture Verizon Wireless for $130 billion. The blockbuster deal, which would be one of the biggest transactions in corporate history, would allow Vodafone to bounce back from hefty losses, pay down debt, make new acquisitions and return money to shareholders, according to analysts. The deal also marks the group’s exit from the United States market and injects several billion euros into the British economy that is struggling to lift out of the doldrums. Verizon said it will pay Vodafone $58.9 billion in cash and issue common stock currently valued at approximately $60.2 billion, with other items accounting for the balance.

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