Here’s a plot twist that I’m sure that nobody was expecting. Here’s what Reuters is saying:
Verizon Communications Inc is in advanced talks to buy Vodafone Group Plc’s 45 percent stake in their U.S. joint venture for about $130 billion, Bloomberg reported late on Wednesday, citing people with knowledge of the matter.
Okay, so every Canadian reading this blog is wondering why this matters. Let me take you to the Toronto Star for the answer:
Verizon’s balance sheet priority would be on a U.S. deal, and management may not want to detract their focus by investing in Canada, said Dvai Ghose, head of research at Canaccord Genuity.
“If negotiations between Verizon and Vodafone are really heating up, we believe that the prospects of a Verizon entry into Canadian wireless could decline significantly,” Ghose said in a note to clients. The opportunity north of the border is small for a “behemoth” like Verizon, Ghose said.
That doesn’t mean that Verizon does not want to enter Canada, they just don’t want to enter right now because they may need the money. Or they may enter in a different manner. Or it changes nothing. It’s way too early to tell. Thus we’ll have to watch and wait to see what they do on September 17th when deposits for the spectrum auction are due.
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This entry was posted on August 29, 2013 at 3:15 pm and is filed under Commentary with tags Canada, verizon, Vodafone, wireless. You can follow any responses to this entry through the RSS 2.0 feed.
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Verizon Makes Bid To Buy Vodafone Stake…. Is Canada Off The Table?
Here’s a plot twist that I’m sure that nobody was expecting. Here’s what Reuters is saying:
Verizon Communications Inc is in advanced talks to buy Vodafone Group Plc’s 45 percent stake in their U.S. joint venture for about $130 billion, Bloomberg reported late on Wednesday, citing people with knowledge of the matter.
Okay, so every Canadian reading this blog is wondering why this matters. Let me take you to the Toronto Star for the answer:
Verizon’s balance sheet priority would be on a U.S. deal, and management may not want to detract their focus by investing in Canada, said Dvai Ghose, head of research at Canaccord Genuity.
“If negotiations between Verizon and Vodafone are really heating up, we believe that the prospects of a Verizon entry into Canadian wireless could decline significantly,” Ghose said in a note to clients. The opportunity north of the border is small for a “behemoth” like Verizon, Ghose said.
That doesn’t mean that Verizon does not want to enter Canada, they just don’t want to enter right now because they may need the money. Or they may enter in a different manner. Or it changes nothing. It’s way too early to tell. Thus we’ll have to watch and wait to see what they do on September 17th when deposits for the spectrum auction are due.
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This entry was posted on August 29, 2013 at 3:15 pm and is filed under Commentary with tags Canada, verizon, Vodafone, wireless. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.