Boston, MA 05/15/2013 (wallstreetpr) – The Chief Financial Officer of Verizon Communications Inc. (NYSE:VZ), Fran Shammo reported that he is tired of answering questions about the company’s relationship with Vodafone Group. Plc. (NASDAQ:VOD). The two companies have co-founded Verizon Wireless, which is now the largest mobile phone company in the United States.
Dividend Offering
Verizon Communications Inc. (NYSE:VZ), which owns majority stake in the joint venture had decided to pay $7 billion as dividends, out of which Vodafone Group Plc. (NYSE: VOD) would receive $3.15 billion. This move by Verizon Communications Inc. (NYSE:VZ) is spoken off as a negotiating tactic to put some pressure off the partner to agree for the sale of its stake.
Verizon Communications Inc. (NYSE:VZ) views to completely acquire the mobile phone company which had gained the largest market share in US and is more profitable than the landline business. Though Verizon Communications Inc. (NYSE:VZ) had indicated that the stake held by Vodafone Group Plc. (NYSE: VOD) would be valued at $100 billion, the two companies had not taken this deal to the table so far.
Vodafone’s stake
However, Vodafone Group Plc. (NYSE: VOD) had not commented on this deal as it believes that $100 billion value for its stake in Verizon Wireless does not prove to be a favorable opening bid. As the company holds minority stake of 45 percent in the joint venture, the control and decision making lies mostly with the majority stakeholder Verizon Communications Inc. (NYSE:VZ).
