Vodafone is trying to buy Verizon
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I was reading some articles and found out some cool information about our verizoncomm and vodafne. Have fun reading this.
Vodafone owns 45% of the second-largest U.S. wireless operator, which generates $38 billion in annual revenue. Citing "well-placed financiers," Alphaville, a blog run by Financial Times, said Vodafone had considered offering $160 billion for Verizon Communications, a 32% premium over its Friday closing price of $35.53.
Vodafone had considered a two-part strategy of buying Verizon and then aiming to sell off the landline business in a record $90 billion private equity deal. Assuming such a deal would find a place in newly skittish debt markets, Vodafone would then retain the Basking Ridge (N.J.)-based wireless unit and its 60 million U.S. customers.
Shares of Verizon soared as much as 12%, to $44, on news of the proposal before Vodafone issued a statement saying it was not considering a bid. By the end of trading, Verizon shares were 2.4% higher at $42.76. Vodafone's U.S.-traded depositary receipts dipped 1.1% to close at $33.15, just below a 52-week high reached last week.
Also Goldman Sachs Group, which has had a banking relationship with Vodafone, has a private equity arm that recently co-led the $27.5 billion offer to buy U.S. wireless carrier Alltel. The deal, which is still awaiting shareholder approval, would leave the Arkansas-based wireless outfit with a debt-to-equity ratio of almost 8 to 1.
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