Telecoms giants Vodafone and Verizon Communications are to reveal a US$130bn deal today that will give Verizon control of Verizon Wireless – subject to final board approval.
Vodafone said it was in talks with Verizon to sell its 45pc stake in the joint venture, comprising cash and common shares.
Verizon Communications is the largest mobile operator in the US.
Under the terms of the proposed deal, Vodafone would receive US$60bn in cash, US$60bnin Verizon stock, and an additional US$10bn from smaller transactions, the Irish Independent reported.
A full announcement of the terms is expected after the stock market closes in London this evening. Despite the Labor Day holiday in the US today, Verizon’s board is expected to meet earlier in the day to vote on the proposed agreement.
If the deal goes through, Verizon will no longer have to share the billions in earnings Verizon Wireless generates.
For Vodafone, its chief executive Vittorio Colao will receive cash for shareholders and for potential acquisitons to position the company’s operations in Europe and emerging markets.
Vodafone building image via Shutterstock