According to anonymous sources with knowledge of the matter, Verizon Communications Inc is now in advanced discussions in its move to acquire the 45% owned by Vodafone Group Plc. In the meantime, Verizon is also discussion with several banks in order to raise USD10 billion from each to be able to fund at least USD60 billion of the mega-deal.
The sources further indicated that an announcement may even be made as early as Sept 2, confirming the said transaction.
Should the deal push through, Verizon would retain full ownership of the most profitable mobile company in the United States. This would also help overcome the loss of subscribers from its landline business. On the other hand, Vodafone's exit would be able to gain funds it can use for more acquisitions as well as provide fresh finances for its European operations.
This is considered as one of the biggest transactions of all time. What may be included in the deal would be the return of Verizon's 23% stake in Vodafone Italia, which is worth nearly EUR4 billion or USD5.3 billion.
Vodafone spokesperson Ben Padovan did not provide a reply outside office hours while Verizon spokesperson Bob Varettoni declined to provide comment on the transaction.
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