Report: Verizon Buyout of Vodafone Possible
Verizon CEO Lowell McAdam told the Wall Street Journal Monday that Verizon is strong enough to buy Vodafone out of its stake in Verizon Wireless.
Verizon entered into a joint venture with Vodafone back in 2000, creating what is now Verizon Wireless. Verizon currently owns 55 percent of the company, while Veodafone holds the remaining 45 percent.
According to McAdam, such a buyout is "feasible" and would be made easier by the strengthening of the Verizon's wireline business.
Verizon has long admitted to wanting to purchase the rest of Verizon Wireless via a buyout, but the business has proved too valuable for struggling Vodafone to let go. Verizon made a failed attempt to purchase Vodafone's stake in the business back in 2006.
While McAdam said a buyout is always on the table, he admitted that he doesn't feel "compelled to go out and take action to make something happen."
Nevertheless, Vodafone investors apparently liked the talk. Shares of Vodafone spiked over 2 percent on the comments, which McAdam made just ahead of his opening keynote tomorrow at the 2013 Consumer Electronics Show in Las Vegas.
Shares of Verizon were up a half percent in afternoon trading to $44.56.