Vodafone is reportedly in the late stages of selling its 45 percent stake of Verizon, the largest mobile company in the USA, for as much as $130 billion. [It was confirmed this afternoon, Ed.]
Over the weekend, Vodafone said it will be looking for the full $130 billion for its stake and said talks were at an advanced stage.
It is reported that the agreement now just needs the approval of the Verizon board.
Vodafone hopes that – should the deal go through – it will be able to expand further and raise value for shareholders.
In Robert Peston’s BBC business blog, he reported Vodafone may not need to pay any UK tax at all on the £84 billion deal – citing Labour’s 2002 Finance Act which introduced an exemption from tax on capital gains from substantial shareholdings held by companies.
For the three months ending 30 June, Vodafone’s revenues plummeted 3.5 percent – with the company directing the blame at economic difficulties across Europe. But even in Germany, where Vodafone holds its largest share of the market, revenues dropped by five percent. Vodafone also cited market regulation in some European countries as a problem.
Earlier this year, Vodafone bought Kabel Deutschland for €7.7 billion in a bid to diversify its service offerings, including in sectors like broadband and TV.
Shareholders will be expecting the company to turn the ship around,
There could be final confirmation from Verizon later today.
