Vodafone nears $130bn deal with Verizon

Vodafone is on the verge of selling its stake in America's largest mobile phone company for $130 billion.

The company has confirmed it is in “advanced discussions” to dispose of its 45 per cent interest in Verizon Wireless in what would be one of the biggest transactions in corporate history.

Vodafone’s tax liabilities will be minimised by completing the transaction through its Luxembourg subsidiaries and other offshore companies.

The UK firm’s board was said to have met yesterday to approve the deal to sell its stake to its US partner Verizon.

In a statement, it said: "Vodafone confirms that it is in advanced discussions with Verizon Communications Inc regarding the disposal of Vodafone's US group whose principal asset is its 45 per cent interest in Verizon Wireless for $130 billion."

It said the deal would comprise a mixture of Verizon shares and cash.

For Verizon, complete ownership of the joint venture will mean access to $21.8 billion in operating income to boost its network to help fend off competition from Sprint.

Japan's Softbank bought Sprint this year and founder Masayoshi Son has pledged to make the third-biggest US wireless carrier a stronger rival.

Shares in Vodafone have leapt more than 8 per cent over the past week in anticipation of the deal.

Agencies