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Verizon to Buy Vodafone's Stake in Verizon Wireless for $130 Billion

Verizon says deal, which centers on a key cable wireless partner, will boost its ability to link mobile and wireline services 9/02/2013 01:13:54 PM Eastern

Following weeks of recent speculation, Verizon Communications and Vodafone pulled the trigger Monday on a deal in which Vodafone will sell its 45% stake in U.S. mobile giant Verizon Wireless to its longtime partner in a deal valued at $130 billion.

Under the deal, Verizon Communications come away with a 100% stake for $58.9 billion in cash, $60.2 billion in Verizon stock to be distributed to Vodafone shareholders, and another $11 billion from other transactions tied to the main deal, including the issuance of $5 billion in notes payable to Vodafone, Verizon's shedding its 23.1% minority stake in Vodafone Omnitel N.V. to Vodafone for $3.5 billion, and $2.5 billion of the deal's value to be a "combination of other consideration."

To fund the cash portion, Verizon has secured a $61 billion bridge credit agreement with J.P. Morgan Chase Bank, N.A., Morgan Stanley Senior Funding, Inc., Bank of America, N.A. and Barclays.

Click here to read the full story at Multichannel.com.

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