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!

Error: Please check your email address.

Tags business issuestelecommunicationCarriersVodafone GroupVerizon CommunicationsMergers and acquisitionsVerizon Wireless

Featured

Slideshows

Tech industry comes together as Lexel celebrates turning 30

Tech industry comes together as Lexel celebrates turning 30

Leading figures within the technology industry across New Zealand came together to celebrate 30 years of success for Lexel Systems, at a milestone birthday occasion at St Matthews in the City.​

Tech industry comes together as Lexel celebrates turning 30
HP re-imagines education through Auckland event launch

HP re-imagines education through Auckland event launch

HP New Zealand held an inaugural Evolve Education event at Aotea Centre in Auckland, welcoming over 70 principals, teachers and education experts to explore ways of shaping and enhancing learning using technology.

HP re-imagines education through Auckland event launch
Reseller News ICT Industry Awards 2017 - Meet the winners...

Reseller News ICT Industry Awards 2017 - Meet the winners...

Reseller News honoured the industry’s finest on a standout evening for the New Zealand channel, recognising the achievements of established and emerging partners on a memorable night in Auckland.

Reseller News ICT Industry Awards 2017 - Meet the winners...
Show Comments