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Comments on news posted 2007-07-16 08:49:20: Just a few weeks ago, reports began to surface that Vodafone was thinking about selling their share of Verizon Wireless (its full worth estimated to be somewhere around $60-$70 billion). ..

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N3OGH
Yo Soy Col. "Bat" Guano
Premium Member
join:2003-11-11
Philly burbs

N3OGH

Premium Member

Mostly speculation

This is mostly just speculation, probably floated by someone who owns a large chunk of stock.

But, it would make sense for Vodafone to make their move for the rest of Verizon wireless now. The US dollar tests new lows against British and European currencies daily, giving overseas investors an advantage as far as cash positions.

I seriously doubt Verizon would give up their stake voluntarily, though. A lot of time and money has been spent over the years to bolster Verizon's wireless image. I don't think they would just "walk away" from the wireless business...

supergirl
join:2007-03-20
Pensacola, FL

supergirl

Member

Re: Mostly speculation

Another BBR debacle: Vodafone issued a press release to the NY Times stating they are NOT interested in buying Verizon.

»www.nytimes.com/reuters/ ··· f=slogin

"LONDON/NEW YORK (Reuters) - Wireless telecommunications company Vodafone Group Plc said it is not planning to bid for Verizon Communications Inc , responding to a report it was considering a $160 billion offer.

The Financial Times' FT Alphaville blog said on Monday that Vodafone was considering such a bid -- which would consolidate ownership of their wireless joint venture -- prompting Verizon's shares to jump more than 12 percent in premarket trading.

Verizon shares gave up most of those gains after Vodafone's denial and were up only 2.23 percent at $42.69 at midday. Vodafone shares trimmed earlier losses to trade down 0.61 percent at 162.20 pence.

"Vodafone wishes to make it clear that it has no plans to make such an offer," the company said in a brief statement.

Verizon spokesman Bob Varettoni declined to comment.

A $160 billion bid would represent a 32 percent premium to Verizon's market capitalization of about $121 billion at Friday's close."
Ahrenl
join:2004-10-26
North Andover, MA

Ahrenl

Member

Re: Mostly speculation

I wouldnt' call it a BBR debacle, every news agency in the US reported this deal, over and over.

Other speculation was that Vodaphone was trying to prop up Verizon's share price, so Verizon could use an equity offering to buy out Vodaphone's stake in VZW.

N3OGH
Yo Soy Col. "Bat" Guano
Premium Member
join:2003-11-11
Philly burbs

N3OGH

Premium Member

Re: Mostly speculation

Yeah, I wouldn't call it a BBR debacle either. Most of the major wire services picked up this story.

The idea of improving VZW's stake by fluffing the stock price was something I didn't think of...

phattieg
join:2001-04-29
Winter Park, FL

phattieg

Member

Re: Mostly speculation

said by N3OGH:

Yeah, I wouldn't call it a BBR debacle either. Most of the major wire services picked up this story.

The idea of improving VZW's stake by fluffing the stock price was something I didn't think of...
Well, I hope they DO buy Verizon. It would be nice to have a new name/company. Maybe the rates will go down on their rediculously high priced cell phone service. I loved their coverage, and internet speed, but hated the cost. They are CRAZY expensive...

NY Tel
Premium Member
join:2004-04-09
Smithtown, NY

NY Tel

Premium Member

Re: Mostly speculation

said by phattieg:

said by N3OGH:

Yeah, I wouldn't call it a BBR debacle either. Most of the major wire services picked up this story.

The idea of improving VZW's stake by fluffing the stock price was something I didn't think of...
Well, I hope they DO buy Verizon. It would be nice to have a new name/company. Maybe the rates will go down on their rediculously high priced cell phone service. I loved their coverage, and internet speed, but hated the cost. They are CRAZY expensive...
My fear is that they buy VZ Communications, keep VZ Wireless and sell The landline company to AT&T. Back to 1 monopoly.

N3OGH
Yo Soy Col. "Bat" Guano
Premium Member
join:2003-11-11
Philly burbs

N3OGH

Premium Member

Re: Mostly speculation

"My fear is that they buy VZ Communications, keep VZ Wireless and sell The landline company to AT&T. Back to 1 monopoly."

BITE YOUR TONGUE. GO ON, BITE IT. Bite it HARD.

I haaaaaaaate AT&T. Ever since they shafted me into paying their bogus bill.

Did I mention I hate AT&T?

NY Tel
Premium Member
join:2004-04-09
Smithtown, NY

NY Tel

Premium Member

Re: Mostly speculation

said by N3OGH:

"My fear is that they buy VZ Communications, keep VZ Wireless and sell The landline company to AT&T. Back to 1 monopoly."

BITE YOUR TONGUE. GO ON, BITE IT. Bite it HARD.

I haaaaaaaate AT&T. Ever since they shafted me into paying their bogus bill.

Did I mention I hate AT&T?
No but tell us how you really feel....lol
I have predicted and feared this for years. Having been an insider at VZ......It is a possibility.

Bell System
Premium Member
join:2005-12-04
Strongsville, OH

Bell System to NY Tel

Premium Member

to NY Tel
ding. Think aboot it. Vodaphone buys Verizon, then sells the landline plant to at&t, keeping VZW. That way they (at&t) won't raise as many eyebrows when they buy verizon as they won't be gobbling up both landlines and wireless...

besides VZW isn't GSM. No fear about it...it will happen.

AT&T will buy Verizon landline after 2 things happen...

1. Verizon one way or another isn't attatched to VZW.

2. Verizon sells off it's "unprofitable" markets/regions. (same deal goes for qwest. no way at&t buys qwest as is. watch for qwest to sell their unprofitables before being bought by at&t.)

Make a note of this, for it shall be true.

NY Tel
Premium Member
join:2004-04-09
Smithtown, NY

NY Tel

Premium Member

Re: Mostly speculation

.....And so ends competition, lower prices, free nights and weekends, mobile to mobile calling.

Bell System
Premium Member
join:2005-12-04
Strongsville, OH

Bell System

Premium Member

Re: Mostly speculation

how would that end competition? at&t wireless and VZW would not be combined. And at&t landline and VZ landline compete at the highest levels, (much like at&t/bellsouth pre-merger)

Besides with a move like that, the existing unions in the "provitable" areas would most likely stay but as they would be merged w/ at&t who has both CWA & IBEW currently.

NY Tel
Premium Member
join:2004-04-09
Smithtown, NY

NY Tel

Premium Member

Re: Mostly speculation

said by Bell System:

how would that end competition? at&t wireless and VZW would not be combined. And at&t landline and VZ landline compete at the highest levels, (much like at&t/bellsouth pre-merger)

Besides with a move like that, the existing unions in the "provitable" areas would most likely stay but as they would be merged w/ at&t who has both CWA & IBEW currently.
It was just my gloom and doom sense of humor coming into play...

inteller
Sociopaths always win.
join:2003-12-08
Tulsa, OK

inteller

Member

Actually what would make more sense...

...is for Vodaphone to sell out their chunk of Verizon and buy T-mobile instead.
BosstonesOwn
join:2002-12-15
Wakefield, MA

BosstonesOwn

Member

Re: Actually what would make more sense...

said by inteller:

...is for Vodaphone to sell out their chunk of Verizon and buy T-mobile instead.
Id say the same, isn't vodaphone gsm based everywhere else ?

I mean really they would be the cadillac of wireless carriers if they could offer non rated roaming to even europe where they have coverage for american phones and vice versa.
KevinYeaux
join:2007-04-07
Hammond, LA

KevinYeaux

Member

Re: Actually what would make more sense...

I wish whether that happens or not T-Mobile could build out their network... the one thing keeping me to Cingular, besides their contract, is that T-Mobile's network isn't good around here... a friend of mine has T-Mobile and when it works... it works great... but often his signal is one bar or none at all... (though with 3 or more bars he gets better signal than I do with 5 bars on AT&T)

menumorut
BE an American.
join:2005-07-04
Queens Village, NY

menumorut to inteller

Member

to inteller
...as Vodafone got overbid by Orange (France telecom)in a bid for a Ya.com (Spanish ISP)formerly owned by parent of T-mobile, Deutsche Telecom.

Agent_haito
join:2002-09-20
Winston Salem, NC

Agent_haito

Member

Hmm

So would they pay $160billion in Euro's or Dollars? That's a nice chunk of change

Raptor
Not a Dumptruck
join:2001-10-21
London, ON

Raptor

Member

Re: Hmm

said by Agent_haito:

Euro's or Dollars?
....denied a report it was weighing up a massive $160 billion offer for Verizon Communications....

Oddly enough, not every country uses the $ sign to denote currency just because Americans do.

Unless the authors of these articles are just giant slackers..

sporkme
drop the crantini and move it, sister
MVM
join:2000-07-01
Morristown, NJ

sporkme to Agent_haito

MVM

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If it is US dollars, that works out to "only" 79 billion pounds.
caco
Premium Member
join:2005-03-10
Whittier, AK

caco

Premium Member

Good bye Fios if this ever happens

Not likely to happen but if it did, it would be good bye future Fios deployments. Vodaphone debt load would be so huge they would have a hard time funding any new Fios deployments.

N3OGH
Yo Soy Col. "Bat" Guano
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join:2003-11-11
Philly burbs

N3OGH

Premium Member

Re: Good bye Fios if this ever happens

WOW, I was reading the FT article.

That's a LOT of money moving around there. I mean STAGGERING.

Well, if it happens, I hope they hold off at least a little while. My CO is being fired for FiOS right now, and I'm on the outskirts of it. Town all ready signed a franchise agreement for TV, so I'm looking forward to having options other than Comcast...

Raptor
Not a Dumptruck
join:2001-10-21
London, ON

Raptor to caco

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to caco
I'm confused, being a simple Canuck. Does VZ Wireless = Verizon? Reading the article sometimes Verizon Wireless is used and sometimes straight Verizon. Same goes for a couple posts already, seemingly distinguishing the two...

Is this a bid for just the wireless portion of VZ, i.e. the mobile phone section of the company? Or VZ as a whole?

If so, depending on revenues/expenditures, a buyout could potentially free up more cash for Fios deployments. VZ could become an ISP only, focus on fiber, and take a real strangle hold on things.

Anyone mind clearing that up?

Sabre
Di relung hatiku bernyanyi bidadari
join:2005-05-17

1 recommendation

Sabre

Member

Re: Good bye Fios if this ever happens

Verizon Wireless is a separate company, dealing in mobile phone services. They are jointly owned by Verizon and Vodafone (I believe the split is 55/45). They are not officially part of the Verizon company, but a half-owned subsidiary.

And frankly, I doubt this'll happen. But now that Vodafone is no longer the lead sponsor of Manchester United, I'd be okay with Vodafone being my cellphone company if it does.
DMS1
join:2005-04-06
Plano, TX

1 edit

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NP
caco
Premium Member
join:2005-03-10
Whittier, AK

1 edit

caco

Premium Member

Re: Good bye Fios if this ever happens

said by DMS1:
said by caco:

Not likely to happen but if it did, it would be good bye future Fios deployments. Vodaphone debt load would be so huge they would have a hard time funding any new Fios deployments.
I think you've got the wrong end of the stick. Vodaphone would only being buying the 60% or so of Verizon Wireless that they don't already own. They wouldn't be buying all of Verizon. Therefore, on the contrary, Verizon would suddenly have loads of cash that it could invest in FiOS.
RTA, The 160 billion is for all of Verizon.
DMS1
join:2005-04-06
Plano, TX

DMS1

Member

Re: Good bye Fios if this ever happens

said by caco:

RTA, The 160 biliion is for all of Verizon.
Yes - I realised that, which is why I deleted my original post. Vodaphone buying all of the Verizon doesn't make much sense, but them just buying Verizon Wireless would in my opinion make a lot of sense.
bruins555
join:2007-06-17
Holderness, NH

bruins555 to caco

Member

to caco
The 160 billion is not for all of Verizon...just the wireless portion of the company...but this part of the company is the part that makes the most money so why would they sell it....Verizon wireless is its own company...I work for Verizon on the landline side of the business and we still have to pay them for company owned cell phones.

biggbrother
Premium Member
join:2001-11-07
Providence, RI

biggbrother

Premium Member

Re: Good bye Fios if this ever happens

said by bruins555:

The 160 billion is not for all of Verizon...just the wireless portion of the company...but this part of the company is the part that makes the most money so why would they sell it....Verizon wireless is its own company...I work for Verizon on the landline side of the business and we still have to pay them for company owned cell phones.
Your not paying attention. Read the article again. This has been clarified in this thread. Vodaphone may pay $160 Billion for Verizon Communications not just Verizon Wireless.

They they would sell off your unit for about $80 Billion.

Bell System
Premium Member
join:2005-12-04
Strongsville, OH

Bell System

Premium Member

Re: Good bye Fios if this ever happens

to at&t.



just thought i'd throw that in to clarify.

cdru
Go Colts
MVM
join:2003-05-14
Fort Wayne, IN

cdru to caco

MVM

to caco
This would have absolutely zero impact on FiOS anything. They are different companies under the same Verizon parent corporation umbrella.
DMS1
join:2005-04-06
Plano, TX

DMS1

Member

Re: Good bye Fios if this ever happens

said by cdru:

This would have absolutely zero impact on FiOS anything. They are different companies under the same Verizon parent corporation umbrella.
You made the same wrong assumption that I did. It appears that the $160B would be for all of Verizon - not just the balance of Verizon Wireless.

cdru
Go Colts
MVM
join:2003-05-14
Fort Wayne, IN

cdru

MVM

Re: Good bye Fios if this ever happens

So I did.

en102
Canadian, eh?
join:2001-01-26
Valencia, CA

en102 to caco

Member

to caco
said by caco:

Not likely to happen but if it did, it would be good bye future Fios deployments. Vodaphone debt load would be so huge they would have a hard time funding any new Fios deployments.
Vodafone is looking for 'Verizon Wireless', not Verizon. Verizon Wireless is owned by Vodafone (45%) and Verizon (55%).

••••••••

WeSRT4
join:2000-11-20
Mobile, AL

1 recommendation

WeSRT4

Member

AT&T is watching

Vodafone buys Verizon Communications and sells Verzion to AT&T keeping Verizon Wireless for themselves. In other news AT&T announces that FTTH is dead.

•••

Subaru
1-3-2-4
Premium Member
join:2001-05-31
Greenwich, CT

Subaru

Premium Member

no way

is Verizon going to sell out to vodafone.

guppy_fish
Premium Member
join:2003-12-09
Palm Harbor, FL

guppy_fish

Premium Member

Re: no way

said by Subaru:

is Verizon going to sell out to vodafone.
Um ... VZ is a publicly traded stock , anyone can "buy out" VZ ... just buy the shares on the open market

P Ness
You'Ve Forgotten 9-11 Already
Premium Member
join:2001-08-29
way way out

P Ness

Premium Member

Re: no way

said by guppy_fish:
said by Subaru:

is Verizon going to sell out to vodafone.
Um ... VZ is a publicly traded stock , anyone can "buy out" VZ ... just buy the shares on the open market
so much to learn so little time.

hardly this easy. Esp for a foreign company
KD4CVR
join:2000-09-21
Gainesville, GA

KD4CVR

Member

Unloading the wireline buisness

I thought about 6 months ago Verizon was unloading its wireline customers to FairPoint???
»www.internetnews.com/inf ··· /3654236

quetwo
That VoIP Guy
Premium Member
join:2004-09-04
East Lansing, MI

quetwo

Premium Member

Re: Unloading the wireline buisness

Only in certain (read: unprofitable) areas.

ITALIAN926
join:2003-08-16

ITALIAN926

Member

ummm yea..

Theres no way Verizon is selling off its wireless business.

Jodokast96
Stupid people piss me off.
Premium Member
join:2005-11-23
NJ

Jodokast96

Premium Member

Re: ummm yea..

said by KD4CVR:

I thought about 6 months ago Verizon was unloading its wireline customers to FairPoint???
»www.internetnews.com/inf ··· /3654236
That is only their New England wirelines.

rock56
@optonline.net

rock56

Anon

thanks to the falling dollar

thanks to record lows of the dollar, buying verizon in british pounds just got cheaper!
pepperxn
join:2001-02-21

pepperxn

Member

vz

I don't know why vodafone would want a wireless company that uses a different technology they're using. yes, the most likely thing would be for vodafone to buy t-mobile, or sell the stake in vzw and leave it at that.

If they sell off their wireline, that includes verizon business/mci. Who knows, if this buyout is allowed, then at&t may be allowed to buy verizon. Can you imagine that? The article mentions private equity (PE) would get Verizon, but I don't see PE paying $90 billion or so for their wireline, unless a couple PEs team up.

Who knows... maybe Qwest could buy part of Verizon. Qwest was already making an offer for MCI that was almost double the size of the company, so would they do so again? (buy almost half of VZ).

I made a comment a while back in a VZ story that some investors fear that Verizon might spin off their wireline. PE owning them would probably result in the end of fios. AT&T owning them might result in something else. I'd say that there's a better chance that AT&T would keep FTTH over PE keeping it. AT&T can't quit FTTH/FTTN, because of the threat of cable companies. This was always something that investors feared, Verizon getting bought.
Hydroshock
join:2002-09-12
Colorado Springs, CO

Hydroshock

Member

Doubt Vodafone is buying

I think it would be more likely that Vodafone is selling their Verizon (VZ is their stock ticker) share.

Vodafone has been taking losses the past few years and could use the money to re-structure their core company.

As for the post about the stock being publicly traded and easily 'bought out' there are a few legal preceedings as far American Anti-trust laws. Also they wouldn't be able to buy stock that's not available on the open market

»moneycentral.msn.com/own ··· ymbol=VZ

shows the stock ownership, likely those large portions aren't on the market for sale.

In other news

»www.forbes.com/feeds/ap/ ··· 142.html

Vodafone has denied the claims.

jgkolt
Premium Member
join:2004-02-21
Avon, OH

jgkolt

Premium Member

vodofone

does vodafone have that kind of money? maybe if they did we would get a more unified gsm service here.
nozzer
join:2004-06-25
Winchester, MA

nozzer

Member

Re: vodofone

Vodafone briefly traded as the worlds largest company back in the pre dot bomb days. And with the US dollar in the toilet thanks to 7 years of mismanagement (Gov spending has grown 42% since 2000) and borrowing, $160bn is now less than 80bn GBP.
Although the denials are firm, aside from the likely government interference, financially it's perfectly doable for Vodafone.

Dread
On course
Premium Member
join:2005-02-28
Bronx, NY

Dread

Premium Member

Win/Win for VZW

This would be a great benefit for VZW users, they'll now have updated phones and not 3 year old junk tech to deal with

Vodaphone gets many phones of very high quality like Japan & Korea
tmc8080
join:2004-04-24
Brooklyn, NY

tmc8080

Member

shareholder value

there is (almost) NO WAY shareholders would agree to the reverse.. vodafone has been a thorn in Verizon's side since their joining forces.. unfortunately for Verizon when they first had become Verizon, they had delusions of grandeur of becoming this global MONSTER of an international telecommunications company with wireless assets all over the world.. My, oh my how the mightily laid plans of global conglomerates fail so dearly.. nevertheless, Verizon is stuck with Vodafone and it's going to cost more than few payphone quarters get to this cash guzzling monkey off their back.

Maybe Verizon can "UP THE BID" and buy back a little at a time for a higher ultimate price.. seems fair.. as short of signing the death warrant for their union workers, price gouging a majority of their territories and selling ALL the unprofitable ones-- this deal flushes down the toilet. BTW, I didn't even have to look at the books of the respective companies to tell you this. Most of what I've said could be gleaned from their own press releases over the years.


dowhattowho
@alltel.net

dowhattowho

Anon

$70 Billion for wireless

Why would Vodaphone put such a low value on its 45% share of VerizonWireless, using Vodaphone numbers,Verizon can buyout the 45% share for $31.5 billion.
qworster
join:2001-11-25
Bryn Mawr, PA

qworster

Member

US regulators probably won't allow this...

Remember what happened when we tried to sell our ports to a foreign company. There's no way the FCC would approve this...and even if they did, Congress would probably step in.
ricep5
Premium Member
join:2000-08-07
Jacksonville, FL

ricep5

Premium Member

Re: US regulators probably won't allow this...

Agreed. Foreign ownership rules would apply. Vodaphone would have to change their corporate charter to Delaware and remake their BoD.

This rumor has to climb a long hill before getting any traction.

emply
@verizon.com

emply

Anon

Verizon does away with union employees

Verizon, Verizon Wireless, & Verizon Business are seperate companies. Verizon wants to get rid of the "Union Jobs" which are the Verizon Res jobs, they want to keep verizon wireless and business because they would not have to pay us union wages or give us 401k, medical, dental, vision, prescription benefits.

•••••••

Xela18954
join:2000-10-06
Richboro, PA

Xela18954

Member

I don't believe US government will allow this...

I don't think this will happen. I mean the whole out buyout of Verizon. Verizon is one of the prime subcontractors to the US government (read DoD, CIA, FBI and NSA among others). No way the federal government will let a foreign company to buy an American telecom company. There is actually maybe a law that actually forbids a foreign ownership of a strategic assets. Telecommunications infrastructure companies qualify for that just like military contractors.

•••••
compton
join:2002-02-08
Brooklyn, NY

compton

Member

Verizon will not sell out to Vodafone

Two Things.


(1) Verizon can't be bought over unless Verizon Board Of Directors agree to a buyout. Companies the size of Verizon have "nasty poison pills" to fend off hostile takeovers and as such can't really be taken over unless they want to be taken over. I am 100% certain that Verizon wants to remain an independent company and does not want to be taken over.


(2) Verizon Wireless is very profitable. VW added 1.7 million new customers in the first quarter of this year while seeing a 10% drop in churn from a year ago. If anything I would guess Verizon wants to buy out Vodafone 45% stake in Verizon Wireless. Vodafone is probably using reverse psychology by saying Verizon's share of VW is worth 80 billion dollars US meaning.....give us (Vodafone) 80 billion and you can have our 45% stake.

Fox McCloud
Crazy like a fox.
join:2006-07-23

Fox McCloud

Member

geesh...

If (and only if) Vodafone bought out Verizon in it's entirety, I could see AT&T purchasing nearly all of Verizon landline....talk about evil; that would leave only Qwest and Ebarq as the 2 major non AT&T phone-companies.

Also, I wonder what Vodafone would due with Verizon's wireless portion? Change the way people are billed? Free incoming calls, but pay by 30 second blocks? Or would they keep the current style and just rebrand everything "Vodafone".

I very much doubt this'll happen....I could see Vodafone buying out all of VZW (or VZW buying out Vodafone's stake), but not Vodafone buying all of Verizon.
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