Verizon looks to buy stake in Verizon Wireless for 100 billion
http://news.yahoo.com/exclusive-verizon-eyes-roughly-100-billion-bid-ve…
Verizon looking to buyout Vodafone's 45% stake in Verizon wireless for 100 billion dollars. Absolutely massive amount of financing would be needed for this deal. They're looking to source 50 billion from debt and the other 50 through equity.
Thoughts on such a large amount of debt/buyout offer?
how is this going to affect VZ stock prices?
From everything I've read (not much, most at bronte capital), this would incur a pretty massive tax bill for verizon and be disastrous for vodaphone, as its really one of their only performing assets
Vodafone are seeing their wireless subs come under pressure from quad-play offerings in Europe and they may decide to use the cash from any verizon disposal to buy up cable companies in Europe (Kabel Deutschland or maybe even Liberty Global) to give them a fixed line presence.
100 billion sounds a bit on the cheap side for the business.
That's probably good, as the implied value of the business is actually $222bn given the $100bn bid for 45%
Anyone know who the advisors are on this?
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