Verizon Communications Inc. purchased the remaining stake in Verizon Wireless , Vodafone Group PLC it does not own a potential $ 13 billion , according to a person familiar with the negotiations , what might be all the time the third largest trading .
Top U.S. mobile operator Verizon, has made ??no secret of its desire to get a comprehensive network is growing rapidly , and create hundreds of billions of dollars in free cash flow , in the hope of monetary gain ownership of the harvest .
Now , rising interest rates , increased competition and rapid Verizon's stock price , which is 12% , in recent weeks , has lent urgency to raise funds to complete the transaction before becoming too expensive.
Across the ocean , Vodafone CEO Vittorio Colao has bided his time , made ??it clear that he will only sell 45% stake , he thinks the right time , the most important is the right price . The deal will leave the world's second largest mobile operator in Europe and emerging markets such as India, Turkey and Africa, the assets of the money back to shareholders .
The deal has been brewing for years. Vodafone came close sales in 2004 , when it bid for AT & T Wireless , Verizon will have to get rid of its stake . British company , however, lost the bidders Cingular, Verizon Wireless stake , and has since held its U.S. wireless market risk.
Verizon Wireless , a joint venture started in 2000 .
Breakthrough ?
A few weeks ago , Verizon and Vodafone to resume negotiations , discussions to sell approximately $ 130 billion, according to the case , who asked not to be named, informed sources . Two sources said , will soon be announced next week .
A third person familiar with the matter warned about taxation, pricing and structure of the company has made ??progress , some issues still need to rationalize . Who warned that the transaction still fall apart.
If the condition in their original state , financing will not be a problem , the sources said, adding that the lender said it will include syndicated loans and layers.
According to Reuters, the April opening , analysts and investors say is , Verizon has hired consultants for a possible $ 10 billion bid is too low , the Vodafone 's stake worth nearly $ 12 billion .
The price tag rises from there , the only deal larger than this will be Vodafone's $ 20.3 billion U.S. dollars acquisition of Mannesmann in Germany , in 1999 and $ 18.1 billion U.S. dollars of AOL Time Warner acquired the following year .
Vodafone said in a statement last Thursday confirmed talks sends its shares rose 9 percent to 207 pence a 12-year high , investors and analysts said the deal could end up on the card. Its stock closed at 205.78 pence. 2.7% gain at $ 47.82 in New York , Verizon 's shares ended the day .
Assuming $ 13 billion dollar price tag , the bank's total consultancy fee will be $ 200 million to $ 250 million between , according to Freeman estimates. For the syndicated loan arrangement fees may be about 0.2 to 0.4 percent , the funds raised or within a certain range 125000000-250 U.S. dollars range of $ 6 billion syndicated loan , the research firm estimates.
The rapid debt PAYBACK
As the U.S. economic slowdown, as most people already own a smartphone , as well as increased competition , Verizon is under pressure to find ways to expand. Despite the steep payments under discussion , Verizon 's investors expect the full rewards of ownership of Verizon Wireless .
Even assuming a $ 13 billion price tag , about half financed by debt , such a deal would increase Verizon's pro forma earnings per share of 13% from the 2014 , Nomura Securities analyst Adam Ilkowitz said in a research report .
"Because Verizon will own 100% of wireless asset is undoubtedly the best in the country, in addition to a modest improvement in fixed-line business, we believe that the market should support the deal , even at this lofty multiples ," Ilkowitz said.
At RBC Capital Markets analyst Doug Colandrea said that with the 2012 cash flow was 28.6 billions of dollars Verizon Wireless , Verizon has the ability to raise capital quickly repay the debt deal.
The two companies also have their own cross-holdings in Vodafone Italy, which may form part of the deal , Verizon company may sell its 23% of Vodafone , which has 77 percent , sources told Bloomberg .
Charles Stanley analyst Tom Gidley - Kitchin said it was inevitable that , Verizon will make a serious attitude.
" Vodafone did not sell , they are willing to wait , " he said. "I do not think Vittorio Colao will be confusing to a sub-optimal price to sell, so I think that Verizon will understand that they will have to pay nearly $ 130 one billion ."
Vodafone has changed its strategy from a purely mobile operators to offer integrated services , such as television and fixed-line broadband . To this end, it has agreed to acquire KABEL Germany 7.7 one billion euros .
Full Control
Verizon Wireless, Vodafone shares have become increasingly valuable in its core European market, its fate has been weakened.
But it has a strategy , you want full control over their assets, and small partner in Verizon Wireless , which has no control over the timing and level of dividends from the group .
Vodafone's Colao said in May that he would not bow to pressure to do any transaction .
Verizon has been able to use dividends as a lever to convince Vodafone to sell . The company did not pay a dividend of assets between 2005 and 2011 , which at the time was regarded as analysts tried to put pressure on Vodafone to do business .
Verizon Wireless, the company paid dividends worth $ 700 million , its parent company in June , indicating that they better conditions than in the early stages of the relationship .
Verizon's representatives declined to comment.
Vodafone investors and analysts expect the company , which has 30.6 billion dollars of debt , according to Thomson Reuters data , return a large number of an agreement , the returns to shareholders , rather than embark on more M & A or repay the loan .
" We want them to distribute very large proportion of the returns to shareholders , analysts Gidley - Kitchin said ."
Will change the disposition of the investment case for Vodafone , the group will remain a mixture of low growth , but in Europe and the cash generated higher growth, but less cash generated from emerging markets , he said.
Analysts and investors said the deal structure to ensure there is not much tax is determined by the seller is a thorny problem to cope.
" Is rumored to be revenue losses amounted to $ 1,000,000,000 , I think this is a good result for Vodafone holders " in the UK -listed telecommunications company 10 largest investors told Reuters reporters .
Vodafone's credit default swaps, the default measure the cost of insuring its debt fell 6 basis points to 70 basis points after the news .



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