Verizon CEO Not Too Keen On Full Vodafone Merger
It would appear that the chief of Verizon communications, Ivan Seidenberg isn’t that keen on a full merger with Vodafone as a report over on The Telegraph states that Seidenberg says there is no compelling reason for such a merger.
However, the CEO did confirm that both companies are constantly in discussion over strategic options. Currently Vodafone has a 45% stake in Verizon Wireless and Verizon Communications has a 55% stake.
Of a possible Verizon/Vodafone merger, Seidenberg that there is no compelling reason for investors to think the merger is an exciting thing to do and in the long term minority interest partners in your business, you would probably like to resolve that and added that with the absence of new information a merger doesn’t have a lot of appeal.
Verizon Communications has been blocking mobile dividends since 2005 and Vodafone has been trying to have them reinstated, and apparently analysts believe that dividend payments will restart in 2011 once Verizon Wireless is expected to be dept free. However a full merger between Verizon Communications and Vodafone would create a company worth in excess of Â£120 billion.