Verizon (VZ) Gains Approval for Vodafone's (VOD) Verizon Wireless Stake

NEW YORK (TheStreet) -- Verizon (VZ) announced Tuesday that its shareholders have approved the $130 billion deal to buy Vodafone's (VOD) 45% stake in Verizon Wireless.

Verizon fell 0.6% to $47.40, and Vodaphone gained 0.9% to $37.12.

Verizon will issue up to 1.28 billion shares of common stock to Vodafone shareholders as a part of the deal. Vodafone shareholders approved the plan earlier in the day.

"Acquiring Vodafone's stake in Verizon Wireless will provide Verizon with greater financial flexibility to invest in new technologies and address evolving customer demands," Verizon CEO Lowell McAdam said in the press release announcing the approval. "This is critical because we believe that, when it comes to wireless growth, we are just getting started."

The deal is expected to close by Feb. 21, and is subject to regulatory approval and court approval in the United Kingdom.

TheStreet Ratings team rates VERIZON COMMUNICATIONS INC as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate VERIZON COMMUNICATIONS INC (VZ) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

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