According to Verizon Communications CEO Lowell McAdam it would like to buy out its joint venture partner Vodafone but will not do so at any cost. These remarks were made to JP Morgan analysts.
According to JP Morgan analyst Philip Cusick told his clients that McAdam said he was not inclined to provide a premium when purchasing the 45% stake of Vodafone in Verizon Wireless. This is because Verizon Communications had majority control of the joint venture.
According to share valuations, the shares of both entities have increased by 20% this year on rumors that Vodafone would be exiting the joint venture in the United States formed in 2000.
Verizon management has increased its word war, saying that they want to do a deal and two anonymous sources have told Reuters that the American firm is working on a US$100 billion or GBP64 billion bid in order to control of the successful wireless company.
Vodafone for its part, it is keeping an 'open mind' on whether to continue participating in the business where the value provides 75% of its business.
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