• Sharebar


Deal could happen as soon as the 2nd. The amount of capital Vodafone would exit with is incredible.

Also, some nice IB fees for this.

Comments (19)

  • youjustgotlittup's picture

    Reuters reports that Verizon Wireless had FCF of $28.6 billion in 2012. Since Verizon is buying the 45% stake that means they are basically buying $12.85 billion of FCF a year (I dont know what the growth possibilities are) for 130 billion. To me that seems fairly priced at about 10 times FCF. Any telecom experts here that have an opinion regarding the 130 billion valuation?

  • In reply to GED or Bust
    leveredarb's picture

    GED or Bust wrote:


    Good for vod retarded for vz

    Really interested if you could go into more detail.

    Vz will do a deal at peak Valuation and leverage up just before wireless industry becomes a lot more competitive. They will significantly overpay and hence destroy shareholder value. Unlike what the sell side And a lot of us Investors seem to believe leverage driven eps accretion doesn't add value, just lever up at hold co level if you have to.

  • AnalystMonkey2769's picture

    I don't throw darts at a board. I bet on sure things. Read Sun-tzu, The Art of War. Every battle is won before it is ever fought- GG