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http://www.bloomberg.com/news/2013-08-29/verizon-s...

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)

  • ct banker's picture

    Who's on the mandate and what would the fees be for this deal.

  • Scandal's picture

    Looks like a lot of peoples' Labor Day Weekends are getting ruined.

    Calm down.

  • 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 youjustgotlittup
    ct banker's picture

    Now please correct me if I am wrong. Because verizon has ridiculous amounts of D&A isnt a valuation using a multiple of FCF kind of not as relevant as looking at EBIT multiples or other ways of looking at a company including D&A?

  • Royal Monkey's picture

    the amount of fees the Ibanks involved in this deal are going to bank will be amazing ;)

  • leveredarb's picture

    Good for vod retarded for vz

  • In reply to leveredarb
    GED or Bust's picture

    leveredarb wrote:

    Good for vod retarded for vz

    Really interested if you could go into more detail.

  • i3wso's picture

    Heres the breakdown:

    Guggenheim Securities & ex-MS Taubman advising Verizon (rumor is they've been on it for over a year or more)
    JPM, MS, Barclays, BAML on financing, and also co-advisors for Verizon (rumor is they came a bit later for financing reasons and now co-advising the closing)
    GS and UBS advising Vodafone

  • In reply to GED or Bust
    leveredarb's picture

    GED or Bust wrote:

    leveredarb:

    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.

  • leveredarb's picture

    Ideally you just sell it to AT&T, they are also ex growth and very happy to destroy value through European acquisitions

  • mossy695's picture

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  • 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