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Report: Verizon trying to buy out Vodafone

Report: Verizon trying to buy out Vodafone

According to published reports, Verizon made a bid for Vodafone's 45 percent stake in Verizon Wireless, but it wasn't enough.

London newspaper The Daily Telegraph reported (http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/05/09/cnvoda09.xml) that Verizon offered European telecommunications giant Vodafone $US38 billion for its 45 percent stake in Verizon Wireless.

Verizon Wireless is the second-largest wireless service provider in the U.S., behind only Cingular Wireless, which will soon be 100 percent owned by AT&T.

Although it is no secret that Verizon was looking for full control of Verizon Wireless, AT&T's pending acquisition of BellSouth may have something to do with the timing of Verizon's move.

BellSouth owns 40 percent of Cingular Wireless, while AT&T owns the remaining majority portion. Once AT&T's merger gains all of the approvals necessary, AT&T will be the sole owner of Cingular. And industry watchers expect the acquisition to go through without many hitches early next year.

According to the report, Vodafone is looking for at least $50 billion for its share of Verizon Wireless. Despite the difference between the offer and the figure Vodafone seeks, it's likely that Verizon will ultimately come to an agreement with Vodafone. Full control is just that important to the carrier.


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