Verizon Communications said it has no intention to merge or takeover, alone or jointly, the British group Vodafone, after the Financial Times wrote, citing sources close to the matter, that Verizon and AT & T are working on a bid for Vodafone, the British telecom operator.
Verizon remains, however, interested in the 45% stake owned by Vodafone in the joint venture Verizon Wireless, the largest U.S. mobile operator, according to CNBC.
“As Verizon has said many times, it would be a willing purchaser of the 45 percent stake that Vodafone holds in Verizon Wireless. It does not, however, currently have any intention to merge with or make an offer for Vodafone, whether alone or in conjunction with others,” Verizon said in a statement yesterday.
The announcement of the company, broadcast in an official statement, contradicts recent news, in which unidentified sources claimed that Verizon and AT & T, its main rival in the U.S., are working on a Vodafone bid, for Verizon to take over U.S. assets of the British group and AT & T to take over its remaining operations. Vodafone is valued at $245 billion.
“We think that the wording of Verizon’s press release also makes it clear that Verizon have made their interest in the Verizon Wireless stake to Vodafone and been rebuffed,” said Robin Bienenstock, analyst at Sanford C. Bernstein & Co., LLC.
Bienenstock added: “In other words we view Vodafone as a very reluctant seller. The structure delivers Verizon Wireless distributions to Vodafone tax-free, making it more valuable to Vodafone in its current form than in a sale to Verizon.”
Speculations about a possible transaction between Verizon and Vodafone have intensified since January, as the British group examines options for U.S. assets, which represent about 75% of its value.
According to analysts, the 45% stake owned by Vodafone in Verizon Wireless is valued at around $115 billion.
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