Vittorio Colao, CEO of UK mobile operator Vodafone, has told the Wall Street Journal that US telco Verizon Communications must make a decision on whether to resume dividends at JV Verizon Wireless by the end of next year. At that point, he said, the…
Vittorio Colao, CEO of UK mobile operator Vodafone, has told the Wall Street Journal that US telco Verizon Communications must make a decision on whether to resume dividends at JV Verizon Wireless by the end of next year. At that point, he said, the joint company will have no debt to pay down.
The JV has been a source of contention among some of Vodafone’s shareholders, who are angry that Vodafone hasn’t received dividends on the assets since 2005. The company would be better off, they say, selling off minority investments and focusing on core business.
Many in the market see Vodafone’s recently announced reorganization, which will focus the company on majority owned investments in Europe, the Middle East, Africa and Asia, as a clear sign that such it is just a matter of time until these divestments take place.
