What do you think about this? You can say positive or negative things about this. Talk about financially and global opportunities or lack thereof. Thanks. After that, I will state mine.
Thank you.
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I forgot to include the article but it is here.
"Verizon Communications Inc.'s (VZ) chief executive said the company wants full ownership of Verizon Wireless, its joint venture with U.K.-based Vodafone Group PLC (VOD), the Financial Times reported Thursday on its Web site. Verizon, which owns 55% of the wireless operation, wants to own the unit in full, CEO Ivan Seidenberg said. Vodafone owns the other 45%. "Would I like to have 100% of the earnings given we're doing 100% of the work? Yeah, I would," Seidenberg said. " Vodafone's been a great partner. So the out has to come when Vodafone comes and says, 'Hey, we'd like to change our ownership level.' And when and if they do that, they know how to find me." Full story: http://www.ft.com/c...
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Wanting something and getting it are two different things. I can say I want to own 100% of my house, but coming up with the cash to buy out the bank is another story. At the current value of VZW, I can not this happening anytime soon.
Also a note for MR Seidenberg-- Verizon Communications is NOT doing all the work. It is the employees of VZW that are earning money for you and Vodaphone. So, sit back and enjoy the cash flow!
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Well they wanted Alltel and passed on them for 3 times so if they really want something they will do it. Well, they could always issue bonds to help pay for the transaction if they are going to go that way. If you take, a look of how much they are “giving†to Vodafone from earnings prospective as well as a special dividend it might be better to say ok we will just pay them a onetime payment and stop with those quarterly payments. I don’t recall how much they pay them but it is high. I actually do think that Verizon is doing all the work because Verizon Wireless is a domestic company, and I don’t see anything in the news accounts that states that Vodafone is doing anything with this joint venture other than sitting and j...
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nextel18 said:
Well they wanted Alltel and passed on them for 3 times so if they really want something they will do it. Well, they could always issue bonds to help pay for the transaction if they are going to go that way. If you take, a look of how much they are “giving†to Vodafone from earnings prospective as well as a special dividend it might be better to say ok we will just pay them a onetime payment and stop with those quarterly payments. I don’t recall how much they pay them but it is high. I actually do think that Verizon is doing all the work because Verizon Wireless is a domestic company, and I don’t see anything in the news accounts that states that Vodafone is doing anything with this joi
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Not true actually. There are people who would buy Junk status bonds out there. Please do some research in this area. I specifically deal with bonds so the market for junk status bonds is there which means that there would be higher demand for the higher rated bonds, which indeed is the case.
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nextel18 said:
Not true actually. There are people who would buy Junk status bonds out there. Please do some research in this area. I specifically deal with bonds so the market for junk status bonds is there which means that there would be higher demand for the higher rated bonds, which indeed is the case.
Junk bonds? I think Verizons bonds would be a tad lower than Junk bonds for the given purpose.
Steve Wynn sold Junk Bonds...Now there was a calculated risk. Verizon losiong them selves from their deep pocket partner would not be..
Garbage Bonds comes to mind..Oh and at what interst rate? 21% would be a start.
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I was just stating all bonds. There is interest in the market for all quality bonds whether they are paying monthly to yearly to when they are redeemed from treasury to corporate bonds. People are paying money for junk bonds as well as a high demand for high-grade bonds like Verizon, Vodafone and others sell. Verizon’s credit is too high to make it a junk status. Usually junk bonds start at around 8% and up.
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nextel18 said:
What do you think about this? You can say positive or negative things about this. Talk about financially and global opportunities or lack thereof. Thanks. After that, I will state mine.
Thank you.
With all the debt Verizon is carrying I doubt this would be a great move. Major Phone makers ignore them because they look like a "small regional"carrier with regard to the technology. Without the back up of Vodaphone They will drown in their own debt.......Go for it.
I doubt Vodaphone will sell with the convergence of technologies with LTE unless the new debt level of Verizon appears more omposing in this financial state the country is in.
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Well think about the metrics of the business and see that they generate a boatload of revenue and cash flow to Vodafone and to Verizon. Verizon just wants 100% instead of giving away money in both that front and the special dividends they give. I think it is a good move to do it that way they can get all of the funds, however, I think it’s a bad idea because then they wouldn’t have Vodafone to help when they do LTE domestically and internationally. Vodafone does have a huge debt load themselves so perhaps shareholders will make them sell all or some of their stake to help pay off this debt. Debt these days, unfortunately in this telecommunications industry, isn’t that much and bad as long as they generate tons of cash and have...
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nextel18 said:
Well think about the metrics of the business and see that they generate a boatload of revenue and cash flow to Vodafone and to Verizon. Verizon just wants 100% instead of giving away money in both that front and the special dividends they give. I think it is a good move to do it that way they can get all of the funds, however, I think it’s a bad idea because then they wouldn’t have Vodafone to help when they do LTE domestically and internationally. Vodafone does have a huge debt load themselves so perhaps shareholders will make them sell all or some of their stake to help pay off this debt. Debt these days, unfortunately in this telecommunications industry, isn’t that much and bad as long as
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never say never. As you know, Vodafone is a publicly traded company, ticker VOD, and they have to answer to shareholders who are institutional, governmental, and individual. They all have a say in whether what the company will do for their future. of course they have an incentive to sell the stake- high debt load and pressure to sell off companies where they don’t control and expand into markets like India, where they have a huge presence, or china where they have no or minimal.
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nextel18 said:
never say never. As you know, Vodafone is a publicly traded company, ticker VOD, and they have to answer to shareholders who are institutional, governmental, and individual. They all have a say in whether what the company will do for their future. of course they have an incentive to sell the stake- high debt load and pressure to sell off companies where they don’t control and expand into markets like India, where they have a huge presence, or china where they have no or minimal.
DUH? Uh Heres a newsflash for you Sparky. I make my living through investing. No need to school me on investing 101..LOL
The point is the Shareholders have NO incentive to sell the cash cow....Until that chan...
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Obviously, with your tone and message suggests otherwise, but with your comment about there is no incentive to sell that is again 100% wrong. Let’s list why.
1. Financially. They will no longer receive special dividends, unless granted by Verizon when they sit down with Vodafone to evaluate the situation because of the purchase of Alltel that VZW made. This will allow Vodafone to focus on their debt load and increase EPS and profits as well as to return money to shareholders.
2. Growth. They can focus on other areas of growth like Europe and Asia especially china and India. They have a 67% stake in essar, which is in India, and shareholders want growth instead of investing in a company like Verizon Wireless, which obviously does de...
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nextel18 said:
Obviously, with your tone and message suggests otherwise, but with your comment about there is no incentive to sell that is again 100% wrong. Let’s list why.
1. Financially. They will no longer receive special dividends, unless granted by Verizon when they sit down with Vodafone to evaluate the situation because of the purchase of Alltel that VZW made. This will allow Vodafone to focus on their debt load and increase EPS and profits as well as to return money to shareholders.
2. Growth. They can focus on other areas of growth like Europe and Asia especially china and India. They have a 67% stake in essar, which is in India, and shareholders want growth instead of investing in a company like Verizo
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1. Its Vodafone not Vodaphone.
2. If you looked over the past few years, companies sold their assets in one part of the country or world to invest in the other. It is not uncommon especially in the telecommunications industry to do so. France Telecom did it with a few of their stakes and Vodafone did it with theirs to invest in Essar. It happens and it would continue into the future especially as markets become close to the penetration limits.
3. If you don’t vote for it that’s only one and one doesn’t change votes especially when other shareholders who have percentage stakes would say otherwise. If there were also any kind of activist like an Icahn type then Vodafone would be in a bad time because they would be forced to ...
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This is nothing new. This issue has been talked about for several years now. While only owning 55% of the company, Verizon Wireless still equats to 49% of the yearly earnings for Verizon Communications...why wouldn't you want to own the whole thing? As for Voda...why would you want to sell a company that makes so much money? We'll see if this ever happens...but I wouldn't bet on it.
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Please look at the latest posts as to why Vodafone should sell their stake.
I can sum it up for you.
Growth and financial.
Growth; to grow in other markets with their cash.
Financial; to get a one time payment instead of a stop in dividends that they receive from VZW. (they are getting none until 2010 or 2011 because of the VZ/AT deal) Also they can pay down debt.
See the rest of my posts for further explanations.
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I've read your posts and I know the sides of the issue. But again, companies are in business to make money. A short-term payoff will not equal the long-term gain. There are plenty of reasons for Voda to want to sell now, but with the expansion of Global markets it wouldn't be the best idea. For Verizon, it's a great idea to buy it out now and get all the revenue possible from Wireless. For Voda...it doesn't make sense to sell a company that is about to make several changes that expand their worth, i.e. Rhapsody, Unicel/Rural merger, Alltel merger, Open Access, LTE and the Thunder.
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Oh, ok. Of course, companies are here to make money but if they are not going to be getting that special dividend from VZ because of the buyout of Alltel there is something to be a bit concerned over because this will upset shareholders. Their debt, VOD, is quite high and that will help them pay down their debts. There are better areas than USA’s market to invest in. example; India which Voda has a 67% stake in Essar and China. There are other parts of the world with teen penetration rate. A lot better than USA’s market. Global markets are where it is at; check out France Telecom’s growth in the emerging markets vs. the growth domestically. You can also look at other companies. Please take an international business course, as ...
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Perhaps you should know your audience before making assumptions. I've taken several international business courses as well as studying global capitalism and global business. The issue at hand is that Verizon wants the total control of Verizon Wireless. Voda wants to keep their stake in the company for the longterm effects. There is a reason that the Thunder was made exclusive to Voda and VZW as well as LTE for the both. Also there's a reason that Voda services Verizon Wireless equipment overseas for global phones...oh I bet you didn't know that part, sorry. And again...these talks have been going on for years and Voda won't budge. Not getting the dividends until 09 is not going to kill Voda. The long term gain exceeds the short term...
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The way that you typed suggested otherwise. Especially by saying “but with the expansion of Global markets it wouldn't be the best idea.†that statement suggested that you have not taken a course on international business or perhaps even understand business. Regardless you are wrong with your opinion and statements especially since money is money and shareholders of publicly traded companies do want the most. since they are only a 45% owner in VZW they can look other places like India Like China and others where they can get a higher stake in a higher potential opportunity area. Last time I remembered, Vodafone is an international company and they have operations worldwide and stakes. They have been selling off assets to grow int...
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Stating that someone else's opinion is wrong based on your own opinion...just proves my point and validates that you're not worth the discussion.
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You also proved my point that you don’t understand fundamentals in business and it is important for international expansion and to sell your assets that you are most successful in, if you have a huge gain, and to investing others with a great CAGR like India and China. They are both expected to grow 40% CAGR, which is higher than USA. I can go on and on about the trends but I will not since you do not even want to discuss that and say my opinions are wrong. Lol.
Anyway, you proved my point by not understanding business and I thank you for not continuing this conversation because I would rather have someone with business understanding or just other understanding of the telecommunications industry and its works than someone who says ââ‚...
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Ugh... again? They asked Voda last year and the response was they were happy with their stake in the US. They didn't want to sell 45% and they didn't want to sell 7% which equaled 10 Billion dollars. Voda wants to expand, India yes, and maybe something with China Mobile but why pull out of the US to expand in other markets. Verizon just wants bragging rights. You got AT&T, SBC, Cingular making a big-@$$ communication company. Verizon, with MCI Business, and part owner of VZW. Not so big.... Plus with VZ Communication purchasing Alltel, what did Voda put in the money pot to earn them a 45% stake with 13 million new customers and network? The spoils and bragging rights.
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“Plus with VZ Communication purchasing Alltel, what did Voda put in the money pot to earn them a 45% stake with 13 million new customers and network?â€Â
Technically its VZW purchasing Alltel. What did Voda put into it? easy. No dividend payments for 2-3 years.
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So what is your take on it? Will VZ get the goods or will Voda hold on to it's 45% stake in the US. I think Voda will keep their stake myself. There really isn't much of a US carrier Voda can buy into in the US.
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Since Vodafone is having issues within their European subsidiaries but gaining a lot in their emerging market plays, I think it would be wise to sell of their stake in VZW, maybe not now, but in a few years so that they can ask for a better price for their stake to focus on paying off debt and expanding into other emerging market areas in which they have small or no presence at all. It isn’t so much of another carrier to buy in the United States, even though there are, it’s the fact that when you have a big gain it is time to sell especially when trends like penetration rate is very high and there is frankly not much you can do to entice customers besides to grow data ARPU in which Voda doesn’t really have a say in it until LT...
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Maybe they'll sell their stake when the economy is better but not now. And I'm not so sure they're as willing to take risks the way you think they are especially given some of their failures in some of their overseas investments.
Also, how much do you think VZ would have to pay Voda for their share?
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Interesting statement and question.
Of course when economic conditions are such that you don’t have to sell now you don’t have to and that is why I think they will wait a few years maybe a third after the dividend payments start to kick up again before they sell their stake. You are right- it is best not to do anything other than to wait. Actually, the ideal situation is to acquire the company as a whole and to use the Euro to Vodafone’s advantage. That actually makes more sense to have a globalized company but not sure, what the regulators would say about that in all countries. That issue I guess can be talked about in here too or another time.
When you talk about their operations, it is true indeed that some of their ope...
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