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# Vodafone Group Plc Message Board

• franco5@prodigy.net franco5 Dec 11, 2013 11:33 AM Flag

## VOD gives 14,813.55/share to stockholders?

Dear Someone,
According to the news, VOD in March will give to shareholders 84 billion dollars back of Verizon deal. With 5,873,000 shares outstanding, that is equal to \$14,813.55/share---if I'm right, I'm selling my house and buying all the VOD I can!
Luv,
JFM

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• its 4.86 billion shares outstanding not 5.8 million

• so if I own 100 shares of vz and 100 shares of vod, what will I have after the completion of the sale?

• franco5

You need to check your data!

VOD has 48 BILLIOM shares (equivalent to 4.8 billion ADRs) outstanding. The special dividend to ADR holders is about \$17 USD. This will be followed by a reverse split of the VOD shares to maintain the share value near the per-distribution price,

That being the case, VOD still looks good to me and is over weight in my holdings.

mashone 1969

• Don't forget the concept of the stock price falling by an equal amount of the dividend

Stock price is \$35 per share and declares a \$10 dividend

Stock price the following day is \$25 per share - and you have a \$10 dividend in your account

Your equity is still \$35 per share\$

• You need to check the number of outstanding shares. You are off by a few digits. THEN with the reverse split you will effectively have .52 shares but this would mean share price should be double the price prior for the split. THEN the 84B will be paid out on that share figure and share price should trade at a NET price after the divy amount - roughly \$33 in cash AND VZ stock (84B/2.52B=\$33/share). If we assume today's price is to be used, 37.82/.52=72.15, then 72.15-33 divy= new share price of roughly \$39.15 post divy. Of course the share price might vary between now and then but you aren't really gaining much here unless you assume share price will continue to appreciate and/or T is going to step up and take a crack at buying the stub.