Vodafone / Verizon relationship trouble coming

Jun 10 2004 - 12:06 PM ET | Verizon Wireless, Vodafone
The Wall Street Journal today reports [subscription] that the relationship between Vodafone and Verizon Wireless is now being tested. Vodafone owns a huge chunk of Verizon Wireless (44.4%), and now the option of forcing Verizon Wireless to pay $10 billion for a share in it. The option started today and will run through August 9th. bq. Over time, Verizon could buy up the entire holding. Under a put option agreement between the partners, the exact value would be determined by mutual agreement or, failing that, by a third party that both parties agree upon. Because Vodafone mulled (and bid up) buying AT&T Wireless, some think the company wants out of Verizon. If the AT&T deal went down, Vodafone would need to be out of its Verizon stake.