Vodafone Group Plc had planned selling its stake in Verizon Wireless. This marked the second deal worth more than USD100 billion. This also gave the British carrier another chance to transform the company. This also gave Vodafone one more shot to compensate its investors who had suffered a decade of write-offs.
Vodafone's sale of its 45% holding to Verizon Communications Inc. was valued at USD130 billion. This would be the largest transaction of the company after its takeover of Mannesmann AG in 2000. However, the deal in 2000 only led to losses and billions of expenses.
Vodafone's exit from Verizon Wireless would mean giving up a stake in the most profitable US mobile company in the US. The proceeds of the sale would be used to revive its European businesses. England-based Vodafone would also use it to reward shareholders in the company.
According to an asset manager at Storebrand Asset Management Espen Furnes, "Vodafone's strategy wasn't too bright back at the end of the '90s, as they then paid ludicrous amounts for assets such as Mannesmann and 3G licenses, Vodafone has been seeking a solution for Verizon Wireless for years and, if it materializes, would be massively positive and would help wipe away memories of previous strategic mistakes."
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