Verizon Comm. Calling Vodafone

According to an exclusive report from the Reuters News Agency, Verizon Communications Inc. (New York) has hired advisers to prepare a possible $100 billion cash and stock takeover bid of Verizon Wireless (Basking Ridge, N.J.).

Verizon currently owns 55 percent of the country’s largest mobile network operator in a joint venture with Vodafone Group Plc (London).

Reuters says Verizon, which is the biggest U.S. wireless carrier, has not yet put a proposal to Vodafone, but it has hired banking and legal advisers for a possible bid.

The price is expected to be high because Vodafone would incur a tax bill of around $20 billion if it sells its holding, although sources told Reuters that the deal could be structured in a way to keep the tax bill at $5 billion or less.

Another way around the tax issue would be for the two groups to merge, but Verizon has said it is not looking to buy or merge with Vodafone. Rather, Verizon, benefiting from record low interest rates, is expecting to raise about $50 billion of bank financing.

Verizon's board is expected to discuss the details of buying out Verizon Wireless next week at a regularly scheduled meeting being held ahead of the company's annual shareholder meeting.