Report: Vodafone Seeks to Buy Verizon
There's long-shot speculation that
Vodafone
(VOD) - Get Report
could seek to acquire
Verizon Communications
(VZ) - Get Report
.
The latest loose chatter in the telecom sector comes out of
The Wall Street Journal's
"Heard on the Street" column. Discussing the prospect that Vodafone might seek to acquire
AT&T Wireless
(AWE)
, which has been on the auction block for the better part of a month now, the
Journal
discusses the hurdles in Vodafone's path. The article then speculates that Vodafone could get around those potholes by buying all of the leading U.S. phone service.
If completed, Vodafone, the world's largest wireless carrier, might keep Verizon's wireless unit but spin off the rest of the company's businesses, the
Journal
reported Tuesday. Vodafone has a 45% stake in
Verizon Wireless
, while Verizon Communications owns the other 55%.
The news comes in the midst of AT&T Wireless putting itself up for auction in January.
Cingular Wireless
has reportedly bid to buy the company for $30 billion.
Complicating matters, Vodafone announced on Monday that it is considering buying AT&T Wireless. But in order to do so, Vodafone would have to get out of its partnership with Verizon Wireless.
The
Journal
said the two companies are negotiating a deal that would have Verizon pay Vodafone about $20 billion for its stake in Verizon Wireless. It is assumed that Vodafone would use that money to buy AT&T Wireless.
Shares of AT&T Wireless were moving up 5 cents, or 0.4%, at $11.35 in premarket trading, while shares of Verizon were up 40 cents, or 1.1%, at $37.35.