Verizon to buy Vodafone stake for $48b, report

May 15 2006 - 01:57 AM ET | Verizon Wireless, Vodafone

The Observer is reporting that buyout talks between Verizon and Vodafone over Vodafone's 45% stakehold in Verizon Wireless have gotten more serious. Verizon has offered $48 billion for the holding, including inheritence of $8b of debt that make the total value worth a lofty $56b. Shareholders of Vodafone were looking to secure an offer above $45b, so the rumor is that this offer will be accepted. The money will be transferred to the shareholders via a dividend or share buyback.

'Verizon are going to buy out Vodafone,' said one institution. 'There is only one buyer and I suspect that a deal will be cut sooner rather than later.' Some observers believe that the two sides are close to a transaction and that an announcement could come in time for Vodafone's strategy briefing to the City at the end of the month.