On Monday, Verizon Communications was prepared to take full control of its US business through a USD130 billion deal which would end a decade long stand-off by buying out Vodafone from its venture. The deal is said to be the world's third biggest deal of all time.
According to one of the top ten largest stockholders in Vodafone, who told Reuters, "A deal now is very likely. In terms of where the management teams are, they are both keen to do a deal." On the other hand, another one of the top ten investors in Vodafone said that the management team should, if they pull off the deal, be greeted as 'heroes'.
Because of the news of the deal, Vodafone shares jumped 4% in early trading and putting the total increase in share values to 13% since last week. The shareholder sentiment is buoyed by hopes of a large payout for its shareholders. This despite the undervaluation of the remaining assets and the increased possibility of a takeover to occur.
The deal is the career defining moment for Vittorio Colao and Lowell McAdam, the CEOs of Vodafone and Verizon respectively. After a fractious past under the leadership of its predeccessors, the two have become cordial bedfellows to reach the goal of separating the venture between the two telecommunications firms.
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