Verizon Denies Bid For Vodafone Group Plc
The latest twist and turn in the Vodafone (LSE: VOD) (NASDAQ: VOD.US) story has seen VerizonCommunications (NYSE: VZ.US) refute the recent press speculation regarding a takeover bid for the UK-based telecoms company.
The statement from Verizon confirmed that "[i]t does not... currently have any intention to merge with or make an offer for Vodafone, whether alone or in conjunction with others" following rumours that Verizon and AT&T had been working on a 'share break-up bid', which would value Vodafone at 260p per share, or about $245bn.
This public announcement caused Vodafone's share price to fall over 1.5% in early trade this morning, down to 189p at the time of writing, after having ended yesterday on a new five-year high at 192p.
However, Verizon did reiterate today that it "would be a willing purchaser of the 45% stake that Vodafone holds in Verizon Wireless". The sticking point here, though, is the large tax bill that Vodafone would have to pay if it sold some or all of its 45% stake.
Clearly, this story has further to run...
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