UK-based cellco Vodafone expects to receive a dividend of up to US$5.5bn next year from US unit Verizon Wireless, according to media reports citing Vodafone CFO Andy Halford.
Vodafone holds a 45% stake in Verizon Wireless, a JV with US telco Verizon…
UK-based cellco Vodafone expects to receive a dividend of up to US$5.5bn next year from US unit Verizon Wireless, according to media reports citing Vodafone CFO Andy Halford.
Vodafone holds a 45% stake in Verizon Wireless, a JV with US telco Verizon Communications.
The US$5.5bn estimate was reportedly based on Verizon Wireless’ cash flow, which generates US$1bn a month or US$12bn a year.
Dividends from Verizon Wireless were first suspended in 2005, to pay down debt accrued from its US$14bn acquisition of mobile operator Alltech.
A Vodafone spokeswoman described the US$5.5bn figure as a “simple arithmetic comment” from Halford, based on Vodafone’s stake in Verizon Wireless and the latter’s cash flow, rather than a sign of strategic positioning.
Verizon Communications and Verizon Wireless declined to comment
