Vodafone denies Verizon bid report

Source: Technology Digital

Date :16/07/2007 14:59:12

Vodafone Group Plc has denied a report from the Financial Times that it plans to pursue a $160 billion takeover of U.S. phone company Verizon Communications Inc.

The FT reported that the mobile giant was lining up a bid to get the rest of Verizon Wireless, owned jointly by the two companies, citing people familiar with the plan whom it didn't identify.

The report lifted Verizon shares as much as 11 percent in early trading before Vodafone released its statement. The stock rose 44 cents to $42.20 in early trading, and added 33 cents to $41.76 in New York Stock Exchange composite trading on July 13.

Verizon spokesman Robert Varettoni declined to comment. A price of $160 billion would value Verizon at about a third more than its current market value of $121.2 billion, based on the July 13 stock close.

The FT said that Vodafone, the world’s biggest mobile-phone server, may buy all of Verizon and then spin off the company's fixed-line business to a buyout firm.

Verizon Wireless, a joint venture in which Vodafone owns 45 percent, added 1.7 million subscribers in the latest reported quarter, topping growth at larger rival AT&T Inc. The unit's sales reached $10.3 billion over that period.

In a statement, Vodafone said that it “notes press speculation that it is considering a possible offer for Verizon Communications (and) wishes to make it clear that it has no plans to make such an offer.''

July 16 2007