Verizon CDS widens on Wireless stake buyout talk
NEW YORK, Aug 29 (IFR) - The cost of insuring Verizon Communication's debt against default rose on Thursday after Vodafone Group said it was in talks with the company to sell its 45% stake in their U.S. joint venture Verizon Wireless.
Verizon's five-year credit default swaps widened around 20%, or 14.5bp, to 85.5bp on the news, breaking out of a range of 55-75bp over the past six months.
Verizon is working with several banks to raise USD10bln from each to finance about USD60bln of the deal and an announcement could come as soon as Sept. 2, two sources told Bloomberg. There were hints of a possible deal back in April of this year.
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