- Says despite numerous turndowns Ivan still has his henchmen in London yanking the chain of VOD for their 45% (estimated @ $39 billion) of VZ wireless.
- Confirmed VZ hasn't paid VOD it's dividend from VZ wireless since 2005.
Why would VOD want to sell? They'd be a fool to do so. They are are sitting on a 45% stake in a nationwide wireless network they don't have to maintain but just sit back and let others manage. No wonder VOD has been saying NO. VZ can't put the scews to them on the dividend much longer.
If VOD decides to get nasty, they'd have every right to demand back payment of five years of dividends - which by the way if done would not only be fair but eliminate the VZ common dividend.
Please recall the CFO of VZ was on "Cramer" recently at which time he reaffirmed the dividend and laid to rest any suspicions it might be cut. Well here's just the case where figurers don't lie but liars figure.
I think you got your facts wrong. vz wireless is 55% owned buy vz communications. vz comm is not obligated to pay a div on the vz wireless shares and has not paid any div to anyone on these shares. Vod is just another shareholder,( as far as I know ) and just like the rest of us can demand all they want. Vz comm may just decide to increase the div in its own stock using the earnings from vz wireless to do so. Thats why cramer is behind vz comm.
Why would VOD want to sell? They'd be a fool to do so. They are are sitting on a 45% stake in a nationwide wireless network they don't have to maintain but just sit back and let others manage. No wonder VOD has been saying NO. VZ can't put the scews to them on the dividend much longer. EXCELLENT question ..
ANSWER .. VZ has been screwing VOD out of hundreds of millions over the last five years ..... Instead, VZ has been paying debt from the ALLTEL deal ..
FABER did a very good job today, using a few words to give a good picture , I finally understood this thing and VZ is winning big time. Of course VOD still owns 45% of Alltel, but they don't seem to have any voice in running the company .. wouldn't you be a bit pissed off, if all of a sudden, your broker said your money is frozen in the account and you cannot make any investment decisions, but he can ... you'd feel like you got a very raw deal ..
also, from what I understand, this topic has a cycle every year or so , and probably won't amount to much ..
Maybe we need the drains family to weigh in here , they've been pretty scarce letely , eh ?? ...later .. gare
My bet is that VZ starts paying a dividend to VOD next year unless VZ Wireless borrows another ton of money to buy yet more spectrum.
In terms of its impact on VZ, paying the same amount to pay off VZ Wireless's debt or paying a dividend to VOD seems to have the same effect on VZ's financials. It's money out the door either way, except I'd agree getting rid of VZ Wireless's debt first was smart thinking.
I don't see much negative news for VZ here whatever happens.
If you buy into a minority stake...aren't you also buying into the management of that stock? In other words They have no more say than I do ( to an certain extent). I know there are issues brought up for vote at shareholder meetings that can be voted, but VOD can kiss my arse if they don't like the way Ivan does things. Let them sell. Hmmm...nah.... Ivan is not that smart is he ;-)