Verizon proposes a price for Vodafone stake

Verizon proposes a price for Vodafone stake

Verizon Communications has revealed its US$130 billion offer to buy the 45 per cent stake Vodafone has in its joint venture Verizon Wireless.

HumanIPO reported last week on the confirmed negotiations underway to acquire shares in what would be the world’s third largest transaction.

While no price tag has publically been attached to the deal, the proposal of US$130 billion was finally revealed yesterday (Sunday).

Analysts expect an announcement by the close of stock markets tonight (Monday).

Described as “the jewel in Vodafone’s crown”, Verizon’s plans of purchase will end an era of expansion after the famous British brand established itself in more than 30 countries across Europe, Africa and India during the past two decades, Finance24 reported.

If the deal is approved, Vodafone will receive US$60 billion in cash, US$60 billion in Verizon stock and US$10 billion from smaller transactions, adding up to an amount of US$130 billion.

Verizon is reportedly prepared to pay as it has secured equally divided finance from JPMorgan Chase&Co, Morgan Stanley, Barclays and Bank of America Merrill.

The value of Vodafone has increased by 13 per cent from the time deal details emerged.

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