Verizon reveals details of Vodafone deal

10 October 2013 | Kavit Majithia

It has been revealed that Vodafone’s management rejected a bid of $95 billion from Verizon Communications for its stake in Verizon Wireless.

Vodafone then offered to merge its entire business with Verizon to create a global telecoms company, before finally holding out for an additional $35 billion and striking its deal to sell the US unit for $130 billion.

A proxy shareholder statement lodged by Verizon also reveals that the company will be required to pay Vodafone a break fee of up to $10 billion if the deal encounters financing problems.

Vodafone, in turn, will have to pay Verizon up to $1.6 billion if shareholders do not approve the deal at forthcoming meeting, which will add to pressure for it to be approved.

The Financial Times reports that the value of the deal will increase by $10 million in cash for every day it does not conclude before the beginning of May next year.