US telco Verizon Communications has denied having any intention of buying or merging with Vodafone, dismissing speculation of a US$245bn deal that had sent the British mobile giant’s shares soaring.
The Financial Times yesterday reported that Barclays…
US telco Verizon Communications has denied having any intention of buying or merging with Vodafone, dismissing speculation of a US$245bn deal that had sent the British mobile giant’s shares soaring.
The Financial Times yesterday reported that Barclays was putting together a three-way merger that could have seen Verizon work with its US rival AT&T to break up Vodafone. Under the plan, Verizon would buy Vodafone’s 45% stake in their US-based Verizon Wireless joint venture, with AT&T acquiring its non-US assets.
But, in a stock exchange announcement this morning, Verizon said it did not currently have any intention of making an offer for the group, “whether alone or in conjunction with others”.
Today’s announcement bars Verizon from launching an offer for Vodafone within the next six months, according to a London based corporate lawyer not involved in the situation. But under the UK Takeover Code Verizon would still be allowed to table a counter offer if another predator appeared on the stage within that period.
However, in the statement Verizon reaffirmed that it would be interested in acquiring Vodafone’s share of their US JV.
“As Verizon has said many times, it would be a willing purchaser of the 45% stake that Vodafone holds in Verizon Wireless,” it stated.
According to analysts from Bernstein Research, its wording suggested Verizon had been rebuffed after approaching Vodafone over the stake, indicating that the UK operator was a very reluctant seller.
Vodafone’s shares, which yesterday closed up 3% after rising as much as 6% in early trading, were down 2.15% to 187.88p as TelecomFinance was going to press.
