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Verizon, Vodafone agree on $130B buyout, pending board approval

updated 06:20 am EDT, Mon September 2, 2013

Agreement announcement expected later today

Vodafone and Verizon Communications have reportedly come to an agreement over the buyout of Vodafone's share of Verizon Wireless, behind closed doors. Verizon Communications will apparently pay $130 billion for the 45-percent stake owned by Vodafone, with approximately $60 billion of the figure being made up of cash and the remainder from stock and other forms of fundraising.

The negotiations, confirmed by the companies late last week, are said to be finalized and need final board approval from both sides, according to the Wall Street Journal. Vodafone's board met on Sunday, with the board of Verizon Communications due to meet afterward, though US governmental bodies may still check over aspects of the deal due to its size. A national security review is possible, as the deal could leave foreign entity Vodafone holding a substantial stake in Verizon Communications.

If completed, the buying-out of Vodafone's stake would give Verizon Communications complete ownership and control of Verizon Wireless. Vodafone will likely use the cash windfall to improve its standing in Europe by improving existing services, acquiring other carriers, and potentially expanding its African holdings.

An official announcement is expected sometime later today.




by MacNN Staff

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