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Verizon Wireless and Vodafone to make decision on relationship soon

As many New Yorkers are already aware, for several months now the wireless-service provider Verizon Wireless has been debating whether to buyout its European ally Vodafone Group Plc. or merge the two companies in what could be a billion dollar decision. And although no decision has been formalized as of yet, shareholders and business analysts are weighing in on the debate trying to sway the companies to make their next move.

With Verizon based in the United States and Vodafone based out of the United Kingdom, there have been a considerable number of disagreements surrounding the relocation of headquarters and who will make up the leadership team. It's because of these disagreements that many people feel that the companies will likely move towards a buyout or partial sale instead of a business merger.

Right now, Vodafone has about a 45 percent stake in Verizon which is said to be worth about $115 billion. A buyout of this size would work in favor for both companies; Vodafone would be able to pursue making acquisitions in Europe and share funds with shareholders, while Verizon would tighten its control over the wireless business.

But despite recent predictions about the companies' futures seeming to suggest this strategy, there is still the likelihood that a full merger could also be down the road. With Verizon and Vodafone both respectively boasting impressive $130 billion and $120 billion market values, their merger could be viewed as one of the biggest takeovers in history.

But despite the talks, there has been no confirmation of a merger or a buyout as of yet. And as Verizon and Vodafones' stocks continue to rise, the world will eagerly await the announcement that could change the face of wireless services forever.

Source: Crain's New York Business, "Verizon, Vodafone talk merger, buyout: sources," The Bloomberg News, March 5, 2013

Please note that the comments on this blog about transactions are not meant to imply that our firm handled such transactions and/or represented any party in such transaction unless expressly stated by us.

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