Verizon Asks Vodafone To Sell Back Stake
is vzw doing tis just for competiton to keep in for with at*t/sbc?
as you know this has been expected for quite sometime, especially now becuase of the merger between T and BLS.
this has actually been going on since 2001 with the whole situation of verizon buying out vodafone's stake, but there are certain points of time when they can do so, or when vodafone can sell. (you can see that in their annual reports)
i dont remember if they did or not, but vodafone, if they won the bid for ATTWS would have to sell their stake in verizon wireless, but obviously they didnt win.
but wasn't voda trying to sell the stakes to vzw in summer? if so why, besides fear of competition did vzw not buy?
well, first off vodafone has mentioned many times including this year they dont want to sell, but that could change with the right $$$ amount. secondly, the only reason to own a 100% stake is becuase they want to compete against T (combined T/BLS and cingular).
they will feel the pressure of investors and becuase of competition.. remmeber when you own 55% u only get 55% of the revenues and income and control in the company. yes they do have the bigger edge regarding ownership, however, vodafone has a say in whatever they do.
other then that, verizon has actually, as the headline said, made a $45B unofficial offer for vodafone's stake. so now it is up to vodafone in which they want to do. i think it would be wise to accept it, becuase they are also selling some or all of their japanese business so i think they can focus more on their core. or it would be very wise to ask for more money perhaps in the $50-60B range or even more becuase verizon wireless continues to make money at a very big rate. i understand this market is becoming saturated, but the way verizon wireless is making money, i dont think it would be wise to sell out, but obviously it would help out verizon becuase of the 100% control. i ...
since then a few things have happened. first leadership of the board of directors has changed. the new director (1) isn't a big fan of vzw's foreign investments and (2) from what rumors say, isn't a big fan of arun sarin, voda's CEO (and one of the few leaders in this industry i genuinely admire).
under new leadership, voda has already put vodfone KK, up for sale. voda kk was previously known as j-phone, and when voda bought them, they were on the bleeding edge of mobile technology, kicking docomo and kddi's ...
i think yes, it is a good idea if they do sell their stake is to invest in their core markets, as well as to invest new ones such as investing in India, which i wrote a paper on. (besides the point) i think that would be better for them.
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