Seeking Alpha article
Paulson buying into Vodafone?
Hedge fund manager Mike Bergen reports hearing John Paulson is buying a major stake in Vodafone (VOD).Bergen: "This is a liquidation story now. Break-up value is 50% higher.."Vodafone's Verizon Wireless deal will leave it with $65B in cash (more than enough to eliminate its $38.8B in net debt) and a $65B equity stake in Verizon. There are already reports AT&T would be interested in Vodafone's international assets once the Verizon deal closes.
Have you looked at trajectory since the VZW sale announcement? I wouldn't call the past five days of trade 'hanging' around with a steady move north and w/accumulation indicators sounding off. We get North of $35/share by early October and, IMO, VOD is then "T"d up for a premium offer in the 30-35% range which is common place premium offer percentages in takeover bids. At the pace we are on, VOD will be above $35 in a week (maybe less). Not predicting such a move. Just hoping for the $35-$40 range by early October. VOD walks away from KD deal this week then I will be even more suspicous of a T deal already being choreographed. Keep in mind this move is with a lot of float (shares). It will take a lot of heavy lifting and then a big hello flash... $50 won't happen without an offer.
Sentiment: Strong Buy
Hmmmm. Where is Eye_Rub? $32.75X150%=$49 Per hedge fund talking head, my target range has been $47-$51. Are you beginning to see the light yet Eye_Rub? If the Paulson rumor is actually true then hold on tight to your shares people. The big hope is a bidding war. T isn't the only one on the hunt and SoftBank has been mentioned in recent articles as a possible suitor. If, and this is a large IF, we get a bidding war then end price will definitely exceed $50 IMO.
Believe the submitted legislation for elimination of roaming charges in EU was the last piece of the puzzle. Several VZ ownership conflicts in VOD gone and now proposed legislation will create a playing field similar to the U.S. market. The intention to give all VZ shares from the buyout to the shareholder, IMO, is VOD management aligning for a takeover by T. No antitrust concerns if T buys VOD.
Sentiment: Strong Buy
Got in last year for the dividend, plus figuring something had to give way with Verizon with rates heading up. Thinking now to hang in there for the payout and whatever comes next. Paulson, AT&T, whatever, there's going to be increased activity in the telecom space generally, and VOD is now prime.
“John Paulson is buying a major stake in Vodafone”
If this guy is getting on board I’m expecting a takeover of VOD.
Who was shorting the UK banks on their way down, and made a fortune JP.