Vodafone Confirms '$100bn' Verizon Sale Talks

Vodafone has confirmed it is in talks with Verizon Communications about selling its stake in their joint US venture, potentially worth more than $100bn (£64.5bn).

The FTSE 100-listed firm owns a 45% stake in Verizon Wireless - America's largest mobile phone operator.

While Vodafone insisted the talks may not lead to a deal, its shares rose 9% on opening as investors welcomed the prospect of a windfall for the company which would amount to one of the largest ever corporate transactions.

While a sale would also boost pension funds, it was unclear whether the Treasury would also benefit.

It is thought that Verizon wants to pay around $100bn although reports have suggested that Vodafone would press for as much as $130bn (£84bn).

Vodafone has a market worth of just under £100bn, which means the bulk of its value is locked up in a business where it has no day-to-day control.

The Newbury-based company is likely to use the proceeds from any sale on major acquisitions or a return of cash to shareholders.

It said today: "Vodafone notes the recent press speculation and confirms that it is in discussions with Verizon Communications regarding the possible disposal of Vodafone's US group whose principal asset is its 45% interest in Verizon Wireless.

"There is no certainty that an agreement will be reached."

Talk of a sale emerged earlier this year when it was reported that Verizon had hired advisers on a possible buyout.

Then, it was suggested that any bid would consist of a roughly 50/50 cash and stock offer.

The potential value of a deal compares with AOL's record $164bn (£105bn) takeover of Time Warner in 2001.

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