LONDON (AFP) - Verizon Wireless, the second biggest US mobile operator, is in advanced talks to buy American peer Alltel in a deal that would enable it to leapfrog market leader AT&T, Verizon part-owner Vodafone said Thursday.
Britains Vodafone owns 45 percent of Verizon Wireless with the remaining 55 percent held by US group Verizon Communications.
"Vodafone confirms that Verizon Wireless is in advanced discussions regarding the potential acquisition of Alltel Corp," the British group said in a brief statement that was prompted by media speculation.
"There is no assurance that a transaction will be forthcoming."
The price of the transaction was set to be about 27 billion dollars (17 billion euros), according to US media reports.
Verizon Wireless is currently the second biggest mobile phone company in the United States with 67 million customers, while Alltel is the fifth largest player with 13 million customers.
The combined group would have more American mobile phone customers than AT&T which has 71.4 million.
Alltel was bought in November 2007 by investment fund groups Goldman Sachs Capital Partners and TPG Capital for 27.5 billion dollars.
In early afternoon trade, Vodafones share price slid 1.58 percent to 152.2 pence on Londons FTSE 100 index of leading companies, which was down 0.16 percent.
Dresdner Kleinwort analyst Lawrence Sugarman told Dow Jones Newswires that the shares fell because the acquisition would "delay any cash Vodafone might get out of Verizon."
In the past, Vodafones outgoing chief executive Arun Sarin had defied calls from prominent shareholders to sell the groups stake in Verizon Wireless.
An analyst at brokerage Daniel Stewart, Mike Jeremy, said the Alltel acquisition "may disappoint those who had hoped Vodafone would sell its stake in Verizon Wireless and return its value as a special dividend."
He said it also pointed to "a possible offer at some stage to Verizon Wireless for a controlling interest."
Most analysts said it was unlikely that major competition issues would arise from the acquisition.
"While some market divestitures will be required, we are optimistic on the overall antitrust prospects of the transaction," Atlantic Equities said.
News of the deal came as France Telecom offered 33 billion euros (51 billion dollars) for Swedish-Finnish operator TeliaSonera in a bid to create the worlds fourth-biggest mobile operator.
The move led to speculation that the world telecom market could be heading for another wave of consolidation.
France Telecom said the proposed deal, which was rejected by TeliaSonera, would create a company spanning 30 countries with 237 million clients -- 168 million for mobile phones and 69 million for fixed line services.
Sarin leaves Vodafone on a high note after five years in charge as the group returned to profit in 2007-08.
India-born Sarin departs his post at the end of July when he will hand over the reins to his Italian deputy chief executive Vittorio Colao.
Since Sarins appointment in 2003, Vodafone has expanded rapidly into emerging markets across Asia and Africa as the group sought to offset the effects of flagging sales and intense competition in maturing Western markets.
- Dow Jones Newswires contributed to this story -
Britains Vodafone owns 45 percent of Verizon Wireless with the remaining 55 percent held by US group Verizon Communications.
"Vodafone confirms that Verizon Wireless is in advanced discussions regarding the potential acquisition of Alltel Corp," the British group said in a brief statement that was prompted by media speculation.
"There is no assurance that a transaction will be forthcoming."
The price of the transaction was set to be about 27 billion dollars (17 billion euros), according to US media reports.
Verizon Wireless is currently the second biggest mobile phone company in the United States with 67 million customers, while Alltel is the fifth largest player with 13 million customers.
The combined group would have more American mobile phone customers than AT&T which has 71.4 million.
Alltel was bought in November 2007 by investment fund groups Goldman Sachs Capital Partners and TPG Capital for 27.5 billion dollars.
In early afternoon trade, Vodafones share price slid 1.58 percent to 152.2 pence on Londons FTSE 100 index of leading companies, which was down 0.16 percent.
Dresdner Kleinwort analyst Lawrence Sugarman told Dow Jones Newswires that the shares fell because the acquisition would "delay any cash Vodafone might get out of Verizon."
In the past, Vodafones outgoing chief executive Arun Sarin had defied calls from prominent shareholders to sell the groups stake in Verizon Wireless.
An analyst at brokerage Daniel Stewart, Mike Jeremy, said the Alltel acquisition "may disappoint those who had hoped Vodafone would sell its stake in Verizon Wireless and return its value as a special dividend."
He said it also pointed to "a possible offer at some stage to Verizon Wireless for a controlling interest."
Most analysts said it was unlikely that major competition issues would arise from the acquisition.
"While some market divestitures will be required, we are optimistic on the overall antitrust prospects of the transaction," Atlantic Equities said.
News of the deal came as France Telecom offered 33 billion euros (51 billion dollars) for Swedish-Finnish operator TeliaSonera in a bid to create the worlds fourth-biggest mobile operator.
The move led to speculation that the world telecom market could be heading for another wave of consolidation.
France Telecom said the proposed deal, which was rejected by TeliaSonera, would create a company spanning 30 countries with 237 million clients -- 168 million for mobile phones and 69 million for fixed line services.
Sarin leaves Vodafone on a high note after five years in charge as the group returned to profit in 2007-08.
India-born Sarin departs his post at the end of July when he will hand over the reins to his Italian deputy chief executive Vittorio Colao.
Since Sarins appointment in 2003, Vodafone has expanded rapidly into emerging markets across Asia and Africa as the group sought to offset the effects of flagging sales and intense competition in maturing Western markets.
- Dow Jones Newswires contributed to this story -
0 komentar:
Posting Komentar