A few shareholders of Verizon Communications are saying that they would be happy to pay out up to US$130 billion for the 45% shareholder stake of Vodafone Group in their wireless joint venture, Verizion Wireless.
A Reuters report last week said that Verizon had engaged the services of advisers to assist in the preparation of a US$100 billion cash and stock bid for Vodafone's stake in Verizon Wireless. Many Vodafone shareholders say that the figure provided for the purchase is inadequate.
However, two shareholders of Verizon had told Reuters that it is willing to include a 20% to 30% premium in order to buyout and secure the company as a whole. Currently, the joint venture generates more than 2/3 of the total revenue of Verizon and all its profits.
Verizon has continuously declined to make any comment on the possible amount for the purchase of the Vodafone shares. It is said to be at US$100 billion or more and if so, this would become the third largest ever deal on record.
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