Verizon Communications and AT&T are reported to be working on jointly putting up a breakup bid for Vodafone, according to FT’s Alphaville blog. Pegged at 40 percent premium or 240 pence a share, the deal values Vodafone at a staggering $245 billion, which would be the biggest M&A deal ever. Also Read - Windows 11 out now in “reliable” beta version, allows Dev Channel users to switch
According to the report, if the deal goes through, Verizon Communications will take over Vodafone’s 45 percent share in its American carrier joint venture, Verizon Wireless, while AT&T will acquire Vodafone’s non-US assets, which includes its Indian operations apart from its extensive European presence. Also Read - Deal of the day, August 2: 6,000mAh battery phone Samsung Galaxy F12 with massive discount on Flipkart
Naturally, all the three carriers refused to comment but FT is attributing it to its “usually reliable sources.” Verizon and Vodafone have been trying to find a solution to their joint venture, where Verizon has been open about owning the entire business and Vodafone has been a willing seller but the two parties have not been able to close the deal owing to tax issues. This three-way deal is said to be a solution. Also Read - OnePlus 6, 6T start receiving Android 11 Open Beta 2: What's in store?
The deal would be equally important for AT&T as it would give it a much larger global footprint and allow it to achieve scale. AT&T was also rumored to be looking at acquiring a 25 percent stake in Mukesh Ambani’s Reliance Jio Infocomm.