Vodafone share price: FCC approves sale of Vodafone’s stake in Verizon Wireless

on Dec 5, 2013
Updated: Oct 21, 2019

iNVEZZ.com, Thursday, December 5: The US Federal Communications Commission (FCC) has given the green light to the proposed $130 billion (£79.4 billion) sale of the 45 percent interest of Vodafone (LON:VOD) in US joint venture Verizon Wireless to Verizon Communications (NYSE:VZ). The approval by the regulator takes Verizon one step closer to owning the entirety of Verizon Wireless.

Vodafone’s share price has been marginally higher in early morning trading today.
Specifically, the FCC yesterday “approved a Verizon petition to allow the company to be more than 25 percent owned by foreign investors, with the Vodafone deal distributing Verizon shares to stockholders in the UK company,” Verizon said in a statement.
“Vodafone welcomes the FCC’s timely consideration of this matter,” the UK mobile operator said in a separate statement.

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The two companies said they expect the deal to be completed in the first quarter of 2014. It is still subject to approval by the shareholders of Verizon and Vodafone.
The transaction, which was announced in September, is the third largest corporate acquisition ever, behind Vodafone’s $183 billion deal for Mannesmann AG in 1999 and AOL’s $164 billion deal for Time Warner the following year. Under the terms of the deal, Verizon will pay $60.2 billion in stock and $58.9 billion in cash for Vodafone’s 45 percent interest.

Vodafone’s senior team will pocket a ₤56 million windfall when the sale is completed (Vodafone share price: Bosses to collect ₤56 million from Verizon Wireless sale).
**Vodafone plans to invest $3 billion in network expansion in India**

Vodafone’s chief executive officer, Vittorio Colao, yesterday said that the UK telecoms giant plans to invest $3 billion (£1.83 billion) over the next two years in network expansion in India’s rural areas.

“Our organic or real investment into the country is a significant $3 billion in two years…,” Colao said.
Colao told reporters in Delhi that he was also seeing progress in India’s regulatory environment, although there was not yet complete clarity. Vodafone has sought regulatory approvals in India to take full ownership of its Indian unit in a $1.6 billion (£976 million) deal. Vodafone now owns 64.38 percent of its Indian unit, which is the country’s second-biggest mobile phone carrier by revenue and users.
India and Germany are the focus investment destinations for the company as there’s immense scope for data growth in India and Germany is a “great” economy, Colao said.
**As of 8:41 UTC buy Vodafone shares at 224.95p**
**As of 8:41 UTC sell Vodafone shares at 224.85p**
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