Verizon Asks Vodafone To Sell Back Stake

[Mike Temporale]

<div class='os_post_top_link'><a href='http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-12T130245Z_01_L12754500_RTRIDST_0_TELECOMS-VODAFONE-VERIZON.XML' target='_blank'>http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-12T130245Z_01_L12754500_RTRIDST_0_TELECOMS-VODAFONE-VERIZON.XML</a><br /><br /></div><i>"U.S. telecom giant Verizon Communications has made an informal approach to Vodafone Group Plc about buying the latter's 45 percent stake in Verizon Wireless for about $40 billion, British newspaper the Business reported on Sunday. "We have made our interest in acquiring Vodafone's stake in Verizon Wireless clear," a Verizon source told the paper. "The ball is now in Vodafone's court." Verizon is under pressure to consolidate control of Verizon Wireless in the wake of AT&amp;T's planned acquisition of BellSouth, which will give AT&amp;T complete control of top U.S. wireless company Cingular Wireless."</i>

[edgar]

I believe that Vodaphone is who put the kabash on Verizon bidding on Nextel vs Sprint because of foreign investment limits, but I might be mistaken. This could open the door for a Verizon bid for Sprint/Nextel again.

-Edgar_

[edgar]

This new article might also explain Verizon's reasons. Seems Vodaphone is in a bit of a turmoil

http://www.infoworld.com/article/06/03/13/76375_HNvodafonechange_1.html?source=NLC-TB2006-03-13

Executive changes at Vodafone Group PLC, including the announcement on Sunday of the resignation of Christopher Gent, life president of Vodafone, indicate a battle over the future direction of the company, analysts say.

Edgar_

[randalllewis]

I believe that Vodaphone is who put the kabash on Verizon bidding on Nextel vs Sprint because of foreign investment limits, but I might be mistaken. This could open the door for a Verizon bid for Sprint/Nextel again.

-Edgar_


Let's hope to heaven this never happens, but given that the current administration has yet to stop any corporate aquisition, Verizon taking over Sprint and leaving the US with two giant wireless companies and tiny T-Mobile would be really bad news.

Cingular has been going gangbusters recently and the upcoming buyout and re-branding is a complete waste of time and resources let alone anti-competitive and anti-consumer.