Vodafone Confirms Advanced Talks On Sale Of Verizon Wireless Stake For $130 Bln

(RTTNews) - Responding to media speculation, British telecom giant Vodafone Group Plc (VOD.L, VOD) Monday confirmed that it is in advanced discussions with Verizon Communications Inc. (VZ) regarding the disposal of its US group, whose principal asset is its 45 percent interest in Verizon Wireless, for $130 billion.

The consideration would substantially comprise a mixture of Verizon common stock and cash. There is no certainty that an agreement would be reached, Vodafone said, adding that a further announcement would be made as soon as practicable.

Media reports said Sunday that the U.S. telecommunications giant has finally struck a deal to buyout its international partner's 45 percent stake in their joint venture Verizon Wireless and that a deal is expected to be announced as early as Monday.

The deal will give Verizon Communications 100 percent control of Verizon Wireless.

As per reports, the $130 billion deal, which is expected to be the second highest all-time corporate deal, is subject to final board approvals.

Verizon has been contemplating the buyout of the stake several times in the past decade, but pricing has been the biggest stumbling block along with the risk of raking up a huge tax bill nearing $10 billion.

The closest they came to reaching a deal was in 2011. Talks have also failed as recent as earlier this year when Verizon was looking to pay about $100 billion for the stake, but Vodafone was hoping a consideration in excess of $130 billion.

However, the talks accelerated since July due to the rising interest rates and growing competition in the U.S. wireless market.

VZ closed Friday's regular trading session at $47.38, down 0.9 percent from the previous close.

VOD settled at $32.35, up 1.73 percent, while VOD.L closed up 0.7 percent at 206.25 pence.