UK treasury assessing Vodafone’s Verizon Wireless stake
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UK treasury assessing Vodafone’s Verizon Wireless stake

Vodafone’s mooted sale of Vodafone’s stake in Verizon Wireless is being assessed by the UK treasury amid predictions that the deal could provide a welcome windfall for British investors.

The UK group’s 45% stake is valued at up to $85 billion, according to analysts and Verizon Group has repeatedly expressed its interests in buying out its UK partner.

UK chancellor George Osborne is monitoring the situation, according to the Financial Times, with Citigroup analysts are reportedly suggesting the stake could fetch between $108 billion and $139 billion.

The treasury is assessing the financial and fiscal implications of any possible deal because of its sheer size, with much of the proceeds being passed on to Vodafone shareholders through dividends.

If the deal was to go through, it would be one of the biggest acquisitions in corporate history.

According to sources, a sale could prove a welcome boost to UK investment and pension funds.

Vodafone is presently one of the biggest listed companies in the UK, with a market capitalisation of £93.6 billion and it is thought most British savers have a direct or indirect interest in the UK telecoms group.

Any potential deal could also have a positive impact on Vodafone shares, but it remains unknown as to how Vodafone would utilise the cash injection.


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