Verizon, the number one U.S. mobile carrier, has made no secret of its desire to gain full ownership of a network that is growing fast and generating billions of dollars in free cash flow, but the companies have tussled over how to value such a deal. Vodafone's Chief Executive Vittorio Colao has bided his time, waiting for the optimal moment to sell the 45 percent stake in a deal that would leave the world's second largest mobile operator with assets in Europe and emerging markets such as India, Turkey and Africa.
Verizon and Vodafone were discussing a sale for around $130 billion in talks that had resumed a few weeks ago, according to a person familiar with the situation, who asked not to be named. The person said on Thursday that an announcement could come as soon as the first week of September. A second source said the announcement could come on September 2.
A third person familiar with the matter cautioned that while the companies had made progress, some issues around taxes, price and structure would still need to be ironed out. There remained a chance that something could happen in the coming week, the source said. If conditions remain as they are, financing would not be a problem, the source added, saying it would include syndicated loans and tiers of lenders.
Bloomberg also reported late on Wednesday that Verizon could pay as much as $130 billion and is working with several banks to raise $10 billion from each to finance about $60 billion of the deal. It said an announcement could come as soon as September 2, citing two unnamed sources.
Source: Reuters
