Verizon Communication’s interest in acquiring full control over its wireless division is heating up as published reports this morning indicate the domestic telecom giant has hired advisers to craft a possible $100 billion buyout of the 45% stake in Verizon Wireless it does not currently own.
Reuters is reporting that the offer to acquire Vodafone Group’s stake in Verizon Wireless could be in the form of a 50/50 cash and stock bid. While that total amount is considered on the low side of what Vodafone would likely want for its stake in Verizon Wireless, the biggest concern is around a way to lower the tax bill for such a transaction.
Verizon’s interest in controlling all of Verizon Wireless is well known as company management has repeatedly said it would be interested in such a move. Rumors about a potential deal have seemingly increased in the past several months, with various offers being suggested. One of the most outlandish was that Verizon was looking to partner with domestic rival AT&T in buying out all of Vodafone for as much as $245 billion, with Verizon then taking over the remaining stake in Verizon Wireless and AT&T taking over Vodafone’s international interests, a partnership that Verizon quickly denied to the chagrin of some.
Verizon Wireless, which is the most profitable domestic operator, has over the 18 months paid out $18.5 billion in dividend payments to its parent companies.
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