To illustrate the irrationality of the markets, one has only to look at the relative price behavior of VOD and VZ over the last year. VZ has appreciated by ~28% relative to the corresponding value of VOD. Today alone, their relative prices have presently differed by a 3.36% gap. Oh well, if the market would only act rationally, this should be a great buying opportunity. SDS
I think you are pretty much right on, if it weren't for the whole currency exchange deal. You'd probably have to adjust for this on a daily basis. But, bottom line, yes if they were to sell off this holding, which their other partner longingly covets, you are talking a pre-tax boost that equates to about 20B. Any way you slice it that's a lot of chocolate bars. Depending upon how it all shakes out, whether it is purchased from them, or they merge the 2 companies, it should drive the price of this stock upward by a hefty amount. I'm a long with a fairly significant position with that said. I can be patient to see how things unwind given the very healthy dividend.
I believe you'd have to adjust for the currency translation, British Pounds to U.S. Dollars. Regardless of the daily fluctuations, the Verizon Wireless stake is huge and should have a very positive impact at some point in time.