Vodafone Group Plc (Newbury, U.K.) is reportedly on the brink of selling its share in Verizon Wireless for $130 billion.
Vodafone, which owns 45 percent of the U.S. mobile telecommunications company, has been in serious discussions for several weeks with Verizon Communications Inc. (New York), its majority partner in the joint venture since 1999.
The transaction would cap 14 years of bickering between the two companies over the asset. The New York Times reports that frequently testy relations between the companies improved with the rise as ceo of Lowell McAdam at Verizon and Vittorio Colao at Vodafone.
Bloomberg News reports that AT&T Inc. (Dallas) might see Vodafone as a potential partner or even acquisition in its attempt to expand into Europe. However, reports Bloomberg, AT&T would only be interested in wireless, less interested if Vodafone expands in cable and fixed-line businesses.
Analysts say AT&T might be willing to pay as much as $124 billion for what’s left of Vodafone.
To revive its European business, where wireless mergers are hampered by regulation, Colao has started acquiring wireline assets, agreeing in June to pay $10 billion for Kabel Deutschland Holding AG, Germany’s largest cable-television provider.