By Soyoung Kim and Michelle Sierra
Aug 31 Verizon Communications is near a
$130 billion deal to buy out the 45 percent stake in Verizon
Wireless it does not already own from Vodafone Group Plc
and plans to raise about $65 billion to fund the purchase,
people familiar with the matter said on Saturday.
Boards of Verizon and Vodafone are each expected to meet
this weekend to approve the proposed transaction, which could be
announced on Monday, the people said.
Verizon has tapped JPMorgan Chase & Co, Morgan
Stanley, Barclays, and Bank of America Merrill
Lynch to help raise the financing through a mix of bonds
and bank loans, the sources said.
It plans to pay for another half of the purchase with its
The four banks are also advising Verizon, along with former
Morgan Stanley banker Paul Taubman and Guggenheim Partners, the
Goldman Sachs and UBS are advising Vodafone, the sources
Verizon Communications and Vodafone declined to comment.
Goldman Sachs declined comment as well. The other banks were not
immediately available for comment.
Under the terms of the deal, Verizon Communications will buy
Vodafone's U.S. holding company, Vodafone Americas, that owns
the Verizon Wireless stake and some other assets, the sources
Verizon will then keep the Verizon Wireless stake and sell
European assets back to Vodafone, in a move that is expected to
reduce Vodafone's tax bill to around $5 billion, the sources
The deal marks the third-largest acquisition announcement in
corporate history and British telecom giant Vodafone's exit from
the large but mature U.S. market.