Reuters - Video

EDITION: U.S. | U.K. | IN

Rough Cuts

Breakingviews: Valuing Vodafone

Thursday, Apr 04, 2013 - 03:32

Breakingviews columnists argue that the UK telecom operator could be worth a third more than where it currently trades. Getting there, though, probably requires selling Verizon Wireless, a deal that has been on hold for a decade.

▲ Hide Transcript

View Transcript

Certainly we've been looking at its that one of the biggest deals in history that just refuses the site saw that happen. Syrian you've been looking at this this week and the full and I -- I cynical right mr. about this. Seven years ago when I Barack I think that's yes. It's a vessel which allow Verizon one -- And -- early in the week and use that may be please -- layups because this we may be that Verizon was interested and and doing some sort of deal Vodafone. That he's glitzy visas to come visit China Verizon one. Passage as Vodafone owns 45% of cries of protest you can't communicate. And that's a very big part of it Verizon. Owns 55% and Verizon wants on the entire thing they want an entire thing for a long time it's been very hard to make a deal worked in various reasons. However there seems to the talks seem to be slightly heat is slowly heating up over time they've they've been going on for forever you know. -- three ran the numbers and we said well it looks like it probably could they probably could do we deal they want to. And if you get a deal Vodafone might be worth about a third more than it's currently bracket suicide a 180 days. Since we've weasel back you backed -- -- he's sciatica what's this seem that Verizon Wireless. Is gonna -- all that which you know candidates and look at this I needed on the I had -- done -- I didn't even have -- -- it was about I'm about eight point five times ebitda -- worth about a 120 billion dollars threats that could be a lot to Vodafone. The voters and is is Lewis how much these -- it's it's worth about it's just a bit. Bit more than that that's -- gritty details are leading and it's an easy merger of equals yeah I get into their by enemy guns most of it Savimbi every couple of problems that we're first off it's it's gigantic. You know horizon is only worth about -- 140 billion. Acquiring company that bit about roughly same size -- hard -- dues they have issued equity and you know do you know -- -- and you can't want equity that's a problem. The other together major problem is the tax problem if if Vodafone jets were to sell. Verizon Wireless stake. It's cost basis is about fifteen billion. So that's to me that mean honestly -- make its -- in its initial us fifteen things that -- capital gains on the difference between fifteen cents and other countries about the physicals yesterday GA huge contingent of Angela entertainment tax yet. However if they did another sort of deal perhaps if they did a merger than that that that that capital gains tax wouldn't come into play because they're offsetting losses in the other divisions run and so that's why people are trying to figure out could they do this and then what he's very -- he comes in -- -- -- -- sort of what does he suppose that things is that AT&T would take all the other assets. And Verizon -- just get the Verizon Wireless and that doesn't count. Why AT&T would want to do this is an -- and helps you become an even bigger domestic. I'm not entirely sure because you know AT&T got out of our operations. They've been kind of inching their way back in there but that be a very big -- you know. The whole thing is that Verizon obviously is one -- for a really long time. And if there's a chance of doing it and then maybe they would and we went with and with as we're showing in the -- in the math and there's a thirty you know. 30% gain. Accidents -- -- for -- for the thunder and I don't in other words they're there could be a lot of that's enough money to that potentially. Split between Verizon. Vodafone and -- -- to make this -- deal -- K well thanks of that -- I'm shall we about so you know this maybe tomorrow maybe next week and quite possibly 510 years -- well. But will also be back tomorrow -- -- breaking news.

Breakingviews: Valuing Vodafone

Thursday, Apr 04, 2013 - 03:32

Top News »

Money »

Finding meaning in the S&P 500 2000 mark Finding meaning in the S&P 500 2000 mark

Mon, Aug 25, 2014 - (2:35)

S&P falls back from record high S&P falls back from record high

Fri, Aug 22, 2014 - (1:35)

S&P 500 closes at new high S&P 500 closes at new high

Thu, Aug 21, 2014 - (1:24)

S&P 500 just shy of record S&P 500 just shy of record

Wed, Aug 20, 2014 - (2:23)

Apple hits $100 a share Apple hits $100 a share

Tue, Aug 19, 2014 - (2:06)

Nasdaq closes at 14-year high Nasdaq closes at 14-year high

Mon, Aug 18, 2014 - (2:23)

Putin puts Wall Street in buying mood Putin puts Wall Street in buying mood

Thu, Aug 14, 2014 - (2:10)

We've become a promotional culture-RetailMeNot's Bodge We've become a promotional...

Thu, Aug 14, 2014 - (4:39)

Dow back to positive territory for year Dow back to positive territory for year

Wed, Aug 13, 2014 - (2:18)

The Exchange »

The Exchange: Hot commodity The Exchange: Hot commodity

Wed, Jul 16, 2014 - (9:25)

The Exchange: Constitutional crusade The Exchange: Constitutional crusade

Wed, Jun 25, 2014 - (11:35)

The Exchange: The value of money The Exchange: The value of money

Mon, Jun 02, 2014 - (9:53)

The Exchange: China’s Second Continent The Exchange: China’s Second Continent

Tue, May 27, 2014 - (9:35)

The Exchange: A master of business arts The Exchange: A master of business arts

Thu, May 08, 2014 - (8:24)

The Exchange: America's bankrupt cities The Exchange: America's bankrupt cities

Mon, May 05, 2014 - (8:52)

The Exchange: Let the rocking commence The Exchange: Let the rocking commence

Tue, Apr 08, 2014 - (8:13)

The Exchange: The Moneyball fallacies The Exchange: The Moneyball fallacies

Mon, Mar 24, 2014 - (9:54)

Is doing good a good business? Is doing good a good business?

Mon, Mar 17, 2014 - (7:38)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

Images of August Images of August

11:55am EDT - (1:00)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

World Cup: Around the globe in 50 goals World Cup: Around the globe in 50 goals

Fri, Jun 06, 2014 - (1:08)

VIVID – Sydney’s spectacle of light VIVID – Sydney’s spectacle of light

Fri, May 30, 2014 - (1:37)