TribLIVE

| USWorld


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Verizon, Vodafone iron out $130B wireless deal

Daily Photo Galleries

By Reuters
Sunday, Sept. 1, 2013, 6:33 p.m.
 

Verizon Communications and Vodafone plan to announce a $130 billion deal on Monday that will give the telecom giant control of Verizon Wireless, subject to final board approval, people familiar with the matter said.

Vodafone said in a statement late on Sunday it was in advanced talks with Verizon to sell its 45 percent stake in the joint venture for $130 billion, comprising cash and common shares, but that there was no certainty an agreement would be reached.

“A further announcement will be made as soon as practicable,” it said of the deal to exit the largest mobile operator in the United States.

Under the terms of the proposed agreement, Vodafone would get $60 billion in cash, $60 billion in Verizon stock and $10 billion from smaller transactions that will take the deal value to $130 billion, two of the people familiar with the matter said.

To fund the cash portion of the deal, Verizon has lined up as much as $65 billion in financing from four banks: JPMorgan Chase & Co, Morgan Stanley, Barclays Plc and Bank of America Merrill Lynch, they said. The banks have committed to the financing, which is expected be split evenly among the four, two people said.

An announcement of the terms is expected to occur when the stock market closes in London on Monday, after the board of Verizon meets earlier in the day to vote on the proposed transaction, people familiar with the matter said.

 

 
 


Show commenting policy

Most-Read Nation

  1. High court will take case on gun ownership
  2. Earth heads for record 2014
  3. Edible pot ban proposed, yanked in Colorado
  4. Crowd at Met protests ‘Death of Klinghoffer,’ calling opera anti-Semitic
  5. Crying suspect trapped in Calif. chimney, saved but arrested
  6. Officials: 500M financial records hacked
  7. Congress examines NSA official’s part-time job
  8. EPA hopes grants will reduce Lake Erie algae
  9. Over 3 years, extended federal leave adds up to $775M
  10. Suspect in Va. disappearance charged in rape
  11. News Alert
Subscribe today! Click here for our subscription offers.