Verizon Quashes Rumors Of Vodafone Deal
Shares of Vodafone Group (NASDAQ:VOD) fell as much as 4.3 percent on Wednesday afternoon after Verizon (NYSE:VZ) filed a document with the SEC stating that: “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.”
The document is a reaction to media reports that suggested Verizon could be in the market for Vodafone’s 45 percent stake in Verizon Wireless, worth as much as $115 billion. Vodafone’s stock climbed nearly 15 percent in the first quarter of 2013, buoyed by speculation of a possible deal. Investors seemed quick to take profits after Verizon all but swept the idea off the table — publicly, at least.
Reports indicate that the two companies are engaged in discussions with shareholders and perhaps even each other about whether or not to pursue a deal.
Investing Insights: Can Apple Keep Meeting Its High Expectations?