On Nov. 14, 2012, at a conference organized by Morgan Stanley in Barcelona, Vodafone (NASDAQ: VOD) CEO Vittorio Colao made it clear that his company is not ruling out an exit from the United States. This came a day after the company released its Q2 report, which showed that it suffered a 1.4% fall in group organic service revenue. This was mostly attributed to the decline in its business in southern Europe. The company also wrote down the value of its Spain and Italy business by $9.4 billion.
Vodafone owns around 45% of Verizon Wireless, while the remaining percentage goes to Verizon (NYSE: VZ). This situation has led to investors and shareholders asking the same question: why would Vodafone want to maintain ownership of an asset it does not control? There has even been a case in the past, where the two companies clashed over payment of dividends. According to Colao, “Verizon Wireless is in the biggest, most attractive market in the world, and it’s the leading company in terms of management and it is still going very well.”