Verizon Communications Inc. (NYSE:VZ) Completes Acquisition Of 45% Stake From Vodafone Group plc (NASDAQ:VOD)

Boston, MA 02/24/2014 (wallstreetpr) – Verizon communications Inc. (NYSE:VZ) has confirmed the completion of a $130 billion buy back of Vodafone Group plc (NASDAQ:VOD) 45% stake in Verizon wireless. The deal is accretive to Verizon EPS by 10% excluding non-operational adjustments. The deal essentially means the end of Vodafone operations in the US while Verizon wireless takes over as the leader in terms of profitability cash flow and performance.

The exit of Vodafone Group plc (NASDAQ:VOD) in the wireless industry in the US provides Verizon wireless with a wide range of opportunities that should give it the much needed financial flexibility with enhanced operational efficiency as well as other innovations aimed at addressing and benefiting consumers. Verizon Communications Inc. (NYSE:VZ) has grown over the past years to become the largest and profitable wireless company, a position that has been acquired as part of its past partnership with Vodafone.

The acquisition of the 45% meant that, Verizon wireless was entitled to issue a total of 1.2 million shares of its common stock to Vodafone shareholders. The proceeds for the transaction were collected from its capita market transactions that occurred on September 2013 including $6.6 billion under its long term loan credit agreement. The acquisition of the 45% stake came at a price, as Verizon since the announcement has dropped by 12% in the market wiping out in the process $19 billion in market value.

Despite the withdrawal of Vodafone Group plc (NASDAQ:VOD) from the market, things are rapidly changing as the fourth largest US carrier T-Mobile continues to impose its mark in the industry. Over the past three quarters, T-Mobile has been able to add 2 million monthly subscribers. The industry continues to change in the market as wireless growth continues to slow in the US as a result of increased smartphone usage and data plans.

Verizon Communications Inc. (NYSE:VZ) continued to slump in the market dipping by 1.77%on Friday trading session to close the week at a low of $47.27.

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Published by Alan Masterson

Alan has over 25 years of trading experience in the U.S. equity markets. He began his career in finance working on a program trading desk specializing in over-the-counter stocks. His career progressed from that point to his current position as senior trader on an institutional trading desk. In the evenings, Alan teaches economics at a local community college. He has contributed articles to various publications over the last six years, including feature articles for an economics magazine and various financial blogs. You may contact Alan via his email ( or his Google+ page (