Vodafone Group has agreed to sell its 45% stake in Verizon Wireless for $130 billion (£84bn), said to be one the largest business transactions in history. Strong speculation that a deal would be struck this afternoon prompted Vodafone's shares to rise more than 4% today.
According to reports Vodafone Chief Exec' Vittorio Colao is to return more than half of the sale price to shareholders.
Commenting earlier today on Vodafone's likely sale of its stake in Verizon, Victor Basta, MD of Magister Advisors, M&A advisors to the technology industry, said: "Vodafone looks set to successfully emerge from this strategic cocoon with a $130 billion butterfly. It is the culmination of a brilliant strategy of building up leading positions in key international markets, to the evident delight of shareholders.
"The risk for Vodafone is that outside of that cocoon the predatory competitor set has changed beyond recognition. The trend for consumers to shop, play, interact, and most importantly spend via their devices has made it imperative for mobile operators to metamorphose from operators into service providers.
"The biggest question for Vodafone today is what's next? Vodafone's DNA, and indeed where it has created most value, has been in its role as a savvy operator across markets. This creates a risk that Vodafone will become the largest 'digital drug mule' in the world, carrying other vendors' valuable content for a fraction of the upside. Vodafone must evolve, and quickly."
Adrian Barnard, Managing Director of Modern Communications, added: "Huge congratulations are due to the Vodafone board for securing £84 billion from Verizon. Vodafone can now invest in Britain, the EU and emerging markets. With this much cash to invest 4G services will develop quicker than originally anticipated and Vodafone could once again become the biggest UK provider.
"Today's deal frees up much needed cash as at a time that the company is investing billions upgrading its network to deliver next generation services."