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Vodafone sells stake in Verizon wireless for $130 billion

In what is the second-largest acquisition deal on record, Verizon will now wholly own the biggest mobile operator in the US.

US COMMUNICATIONS COMPANY Verizon will own its wireless business outright after agreeing to a $130 billion deal to buy the 45 per cent stake of Verizon Wireless owned by UK operator Vodafone.

The buyout, the second-largest acquisition deal on record, would give Vodafone additional cash to pursue its expansion ambitions in Europe. It would also give Verizon the opportunity to boost its quarterly earnings, as it would no longer have to share a portion of the proceeds from the number one mobile carrier in the US.

The deal isn’t expected to have much of an effect on Verizon consumers or on the company’s operations. Vodafone had little influence on Verizon Wireless’ day-to-day operations, and the two companies have kept out of each other’s territory.

The Verizon-Vodafone partnership started in 2000 when what was then Bell Atlantic combined its wireless network on the US east coast with Vodafone’s operations on the west coast. Vodafone had entered the US market a year earlier by outbidding Bell Atlantic to buy AirTouch Communications of San Francisco.

Verizon has had a long-standing interest in buying out its partner, but the two companies hadn’t agreed on a price until now. Analysts said Verizon wanted to pay around $100 billion for Vodafone’s stake, while reports suggested that Vodafone was pressing for the $130 billion.

The largest deal on record is Vodafone’s $172 billion acquisition of Mannesmann AG in 2000, according to research firm Dealogic. Verizon’s buyout of Vodafone should be completed in the first quarter of 2014, the companies said.
Vodafone is already one of the world’s largest telecommunications companies and has its sights set on dominating media services in Europe, its biggest market. The company is making a takeover bid for Germany’s biggest cable operator, Kabel Deutschland.

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17 Comments
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    Mute Annette Temple
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    Sep 2nd 2013, 7:01 PM

    Let’s hope they improve their customer service as at present it’s the worst ever! I’ve lost hours trying to get through the automated shiite and actually talk to a person!

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    Mute Jason Bourne
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    Sep 2nd 2013, 7:20 PM

    Some say the Irish invented this thing called ‘Hope’. A curious breed we are.

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    Mute M
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    Sep 2nd 2013, 7:45 PM

    Try “3″ you get to talk to someone in India, who ultimately is useless.

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    Mute Keith Shanghai Irish
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    Sep 2nd 2013, 7:57 PM

    Ah man I hear that, I hate ringing them with any kind of issue. I’ll go into the store, explain my prob and let the person in the store deal with the call centre in india, or use the forum on boards.

    Good network execpt for the s****y call centre staff.

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    Mute Leslie Alan Rock
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    Sep 2nd 2013, 8:56 PM

    Couldn’t log on last nite with my details agreed worst web site and customer service. They even had a cookie on screen warning you aboit cookies!!! Ye couldn’t see anything

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    Mute Ping Pong
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    Sep 2nd 2013, 7:10 PM

    Not bad for a couple of lads that started in a little office around the back of a chippy

    12
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    Mute Niall H
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    Sep 2nd 2013, 8:50 PM

    But I thought we hated successful, rich, immoral business?? “Tax the rich, they caused this mess” How many times have i heard that statement on here??Down with that capitalism thing!! Green thumb hypocrites

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    Mute BadDrivingIreland
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    Sep 2nd 2013, 7:08 PM

    Whatever about market share, you need good customer care.

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    Mute Dublinjonny
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    Sep 2nd 2013, 7:57 PM

    In other news Eircom announce that scientists have proven that 8 is in fact greater than 50 and 45 is in fact less that 29.99

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    Mute Sean O'Sullivan
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    Sep 2nd 2013, 7:23 PM

    You can always depend on Vodafone coverage…..to let you down!

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    Mute Peter Ryan
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    Sep 2nd 2013, 7:08 PM

    herp derp

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    Mute Eddie Byrne
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    Sep 2nd 2013, 9:17 PM

    Crap customer services I bought a new phone on line and registered on line for a 12 month bill pay contract in june 2012. Went to upgrade in june last and was informed that they didnt do 12 month agreements last year. When i asked for a copy of my agreement they said ive to go to my nearest store for it. Why cant they just email or post a copy to me as i didnt have any dealings with the store in the first place

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    Mute Teresa Hinchey
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    Sep 2nd 2013, 11:06 PM

    Can honesty say the worst coverage in Ireland. Ring then each one have a different story to tell. A bit of training wouldn’t go astry. You are never credited for no service. ??

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    Mute Tomás O'Loughlin
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    Sep 2nd 2013, 9:19 PM

    $130 billion is “additional cash” now? Vodafone’s current asset base is worth $140 billion!

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    Mute Derek Hawkeye Byrne
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    Sep 3rd 2013, 9:24 AM

    Now they will have the funds to improve the signal in Kerry.

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    Mute Denzil
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    Sep 2nd 2013, 9:44 PM

    Wow

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    Mute Catherine Neasy
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    Sep 3rd 2013, 2:15 AM

    Since they moved their customer care up north it has gotten so much worse the staff obviously haven’t been trained and aren’t much help!! (No offence to the staff)

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