Verizon Communications and Vodafone plan to announce a US$130 billion deal on Monday that will give the US telecom giant complete control of Verizon Wireless, subject to final board approval, people familiar with the matter said.
Vodafone said in a statement late on Sunday it was in advanced talks with Verizon to sell its 45 per cent stake in the joint venture for US$130 billion, comprising cash and common shares, but that there was no certainty an agreement would be reached.
“A further announcement will be made as soon as practicable,” it said of the deal to exit the largest mobile operator in the US.
Under the terms of the proposed agreement, Vodafone would get US$60 billion in cash, US$60 billion in Verizon stock, and an additional US$10 billion from smaller transactions that will take the total deal value to US$130 billion, two of the people familiar with the matter said on Saturday.
To fund the cash portion of the deal, Verizon has lined up as much as US$65 billion in financing from four banks: JPMorgan Chase, Morgan Stanley, Barclays and Bank of America Merrill Lynch, they said. The banks have committed to the financing which is expected be split evenly among the four, two people said.
A full announcement of the terms is expected to come after the stock market closes in London on Monday, after the board of Verizon meets earlier in the day to vote on the proposed transaction, people familiar with the matter told Reuters.