Vodafone planning Verizon merger

Vodafone planning Verizon merger

Mobile network operators Vodafone and Verizon are currently in talks over a merger that would see the pair form a formidable partnership spreading across both sides of the Atlantic.

Vodafone has a 45 per cent share in Verizon Wireless and it looks like Verizon could be ready to buy out the UK company, or failing this consider a merger.

A joining together of the pair has been speculated for a number of years and may have been close in the past, but for a few technical details that prevented the deal being signed, with the location of the firm's headquarters and the make-up of its leadership proving to be sticking points in the past.

However, this time around it looks like an agreement may be reached between the two.

Analysts at Espirito Santo believe that a link between Verizon and Vodafone could see the latter making a string of acquisitions in Europe, in a bid to extend its reach from its base in the UK.

"We expect Vodafone will only embark on a series of acquisitions in Europe if it can somehow monetise its 45 per cent stake in Verizon Wireless," they said. "We note neither company has formally substantiated the story."

With Vodafone chief executive Vittorio Colao regularly discussing his desire to sell off the company's non-controlling stake in other operators, it looks like a deal could be on the cards in the near future.

The talk of the buyout or merger has been good for Vodafone on the stock markets, as the rumours helped share prices in the UK operator improve dramatically last week, rising by around six per cent, after the speculation broke.

Positivity around a possible merger or buyout was backed up by a recent report from Analysys Mason, which recently declared that Vodafone has the most valuable spectrum portfolio in the UK following the 4G auction, worth £2 billion.

It is almost ten per cent ahead of rival EE in the spectrum stakes, despite coming to the technology later.