Will Vodafone Keep Verizon Wireless?

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vv.jpgThe will it or won’t it question of the week is whether mobile phone giant Vodafone Group will sell off its stake in Verizon Wireless. Reuters is reporting that it seems unlikely that Vodafone will part with it stake, quoting a source as saying that “Vodafone has decided to hang onto Verizon Wireless for now.”

The key words are “for now,” and it is possible that the world’s second largest mobile phone company might dump its 45 percent in Verizon Wireless at some near future date. Analysts have valued Vodafone’s stake at about $45 billion, but despite this value it is not reflected in Vodafone’s own share price.

Verizon Communications controls the majority share of Verizon Wireless. But so far Vodafone investors have rejected calls by from activist shareholder Efficient Capital Structures, to spin off the stake into a separately-listed company.

[Via Reuters]

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