Feeds

Vodafone mulls $100bn Verizon stake sale - now about that $10bn tax bill...

US giant is back to sniff around Brits' tasty meat

New hybrid storage solutions

Vodafone is back in talks with Verizon about selling its 45 per cent stake of Verizon Wireless, US's biggest mobile network operator.

Today Voda "confirmed press speculation" that negotiations on selling out are back on. But it won't comment on the Wall Street Journal's claim that Verizon has come up with a way for Voda to reduce a massive tax bill it faces as a result of the sale - and that they both need to get the job done before US interest rates make it impractical.

Verizon would have to pay between $100bn and $130bn to buy Vodafone's stake in the Verizon Wireless joint venture, and to do that it will have to borrow at least $50bn (depending on the deal it can strike). The cost of that borrowing will depend on prevailing interest rates, which look likely to rise and that may have pushed Verizon back to the table.

Vodafone, meanwhile, seems quite happy to get shot of its American operation, and could use the cash to expand across Europe. Voda needs cash to acquire competitors and build some 4G networks, but it doesn't want the $10bn (£6.4bn) tax bill a Verizon deal could incur so has hitherto been cold to US advances.

If Verizon really has a tax-slashing offer on the table, and is ready to borrow the cash to fund it, then it just comes down to a game of brinkmanship over the value of that 45 per cent - $100bn or $130bn (£64bn or £83bn), depending on who you ask. ®

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.