Menu
Verizon shareholders approve takeover of mobile unit

Verizon shareholders approve takeover of mobile unit

The buyout of Vodafone's 45 percent stake is expected to close around Feb. 21

Verizon Communications shareholders pushed forward the full buyout of Verizon Wireless on Tuesday, voting to approve the issuance of stock to Vodafone Group shareholders.

A "substantial majority" of Verizon shareholders voted in favor of issuing as many as 1.28 billion Verizon shares as part of a planned US$130 billion takeover of the company's mobile subsidiary, according to a press release. Verizon Wireless is a joint venture between Verizon and U.K.-based Vodafone, but both partners have been seeking for years to change that. They announced a deal last September for Verizon to use both cash and stock to buy Vodafone's 45 percent stake.

Also on Tuesday, at a meeting in London, Vodafone shareholders approved other matters necessary for the transaction to close, Verizon said. The deal still needs approval from the High Court of Justice of England and Wales and must meet other closing conditions. It is expected to close around Feb. 21.

By owning both its wired and wireless businesses outright, Verizon hopes to have more financial flexibility to invest in new technologies and offer more tightly integrated services. The carrier's chief rival, AT&T, is both a wireline and mobile operator.

Analysts believe Vodafone may use the proceeds from the sale to buy more companies in Europe, including wireline carriers. But the company might become a takeover candidate itself if rumors of an offer by AT&T materialize. On Monday, in response to a query from U.K. regulators, AT&T said it doesn't intend to bid for Vodafone in the next six months. But if another company tries to buy Vodafone, AT&T could jump in immediately.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Mergers and acquisitionsbusiness issuestelecommunicationCarriersVodafone GroupVerizon WirelessVerizon Communications

Featured

Slideshows

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019

Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019

The channel came together for the inaugural Reseller News Emerging Leaders Forum in New Zealand, created to provide a program that identifies, educates and showcases the upcoming talent of the ICT industry. Hosted as a half day event, attendees heard from industry champions as keynoters and panelists talked about future opportunities and leadership paths and joined mentoring sessions with members of the ICT industry Hall of Fame. The forum concluded with 30 Under 30 Tech Awards across areas of Sales, Entrepreneur, Marketing, Management, Technical and Human Resources. Photos by Gino Demeer.

Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019
Show Comments