Verizon shareholders approve takeover of mobile unit

The buyout of Vodafone's 45 percent stake is expected to close around Feb. 21

Verizon Communications shareholders pushed forward the full buyout of Verizon Wireless on Tuesday, voting to approve the issuance of stock to Vodafone Group shareholders.

A "substantial majority" of Verizon shareholders voted in favor of issuing as many as 1.28 billion Verizon shares as part of a planned US$130 billion takeover of the company's mobile subsidiary, according to a press release. Verizon Wireless is a joint venture between Verizon and U.K.-based Vodafone, but both partners have been seeking for years to change that. They announced a deal last September for Verizon to use both cash and stock to buy Vodafone's 45 percent stake.

Also on Tuesday, at a meeting in London, Vodafone shareholders approved other matters necessary for the transaction to close, Verizon said. The deal still needs approval from the High Court of Justice of England and Wales and must meet other closing conditions. It is expected to close around Feb. 21.

By owning both its wired and wireless businesses outright, Verizon hopes to have more financial flexibility to invest in new technologies and offer more tightly integrated services. The carrier's chief rival, AT&T, is both a wireline and mobile operator.

Analysts believe Vodafone may use the proceeds from the sale to buy more companies in Europe, including wireline carriers. But the company might become a takeover candidate itself if rumors of an offer by AT&T materialize. On Monday, in response to a query from U.K. regulators, AT&T said it doesn't intend to bid for Vodafone in the next six months. But if another company tries to buy Vodafone, AT&T could jump in immediately.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Mergers and acquisitionsbusiness issuestelecommunicationCarriersVodafone GroupVerizon WirelessVerizon Communications

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?