NEW YORK (TheStreet) -- Vodafone (VOD) - Get Vodafone Group Plc Report has reportedly agreed to sell its 45% stake in Verizon Wireless to Verizon Communications (VZ) - Get Verizon Communications Inc. Report.
The deal is reportedly worth $130 billion, but
Jim Cramer and Debra Borchardt warned that it's not a done deal yet.
However, Cramer said the winner is definitely Vodafone, which will now have plenty of cash to acquire European properties before the region starts to rebound.
He added that the deal would also be good for Verizon, now that it can put the whole wireless venture under one roof.
While Verizon does have some yield support in the stock price, that could quickly diminish if the yield in the 10-year Treasuries notes continues toward 3%. Cramer would be a seller near $50.
Also, as the stock goes higher, there's always a chance that another stock offering could be bigger than expected, too.
He concluded that he likes
at $6 and
-- Written by Bret Kenwell in Petoskey, Mich.
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.