Vodafone open to Verizon sale in deal worth $120bn
THE board of Vodafone would seriously consider any offer for its 45pc stake in Verizon Wireless if it offered more value to investors than the current status quo, its chairman said yesterday.
Vodafone's partner in the US, Verizon Communications, has made little secret of its desire to buy out Vodafone from its joint venture in a deal that would be one of the largest of all time, with a possible price tag of around $120bn (€91bn).
But the US business has become central to the British group in recent years after its fortunes waned in core European markets due to a poor economy, strict regulation and increasing competition.
Gerard Kleisterlee, speaking at Vodafone's annual meeting in London, said his board regularly reviewed the holding in the highly successful US business but added that he did not have anything new to announce about the relationship.
"If we see proposals that generate more value for shareholders we will consider them," he told investors in a meeting that was dominated by questions about the US sale and its European strategy.
"There is ongoing communication (that involves) the full board. Both executives and non-executives are involved in those negotiations with Verizon."
Two people close to the situation said Verizon is working on a $100bn offer, which was seen as an opening gambit by investors.
Andy Halford, the group's finance director, said after the meeting that the company was in a very strong position and happy with the status quo.
"Over the years both sides have had an interest in buying the other side out, and it ebbs and flows," he said. "The great thing is the business is a good one, most people would love to own that business, so it's just a nice position to be in."
Vodafone chief executive Vittorio Colao said in May he would stake his reputation on selling the group's prized stake at the right time and right price, saying he would not bow to pressure to do any deal. (Reuters)