29th Aug 2013 16:10
SAN FRANCISCO (Alliance News) - Verizon Communications is close to sealing a 130-billion-dollar deal to buy the stake of Vodafone Group in their joint venture, Verizon Wireless, the Wall Street Journal reported Thursday.
The report said that the two companies have yet to agree on a price, but that Verizon Communications was offering stock and up to 60 billion dollars in cash to buy the 45 per cent stake in Verizon Wireless owned by the British company Vodafone.
Verizon Wireless is the largest and most profitable US wireless carrier with more than 100 million customers, and the deal would be one of the largest corporate transactions of all time if it comes off.
Verizon has been trying to buy Vodafone's stake for years, but the two companies have long failed to agree on price. Analysts told the Wall Street Journal that the prospect of rising interest rates was spurring both sides to reach an agreement.
"With interest rates rising, there has to be some sense of urgency that is now or never," said Craig Moffett, senior research analyst at Moffett Research.
Copyright dpa
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