vz has a simple goal. How can vz get out of paying dividend portion from vzw to vod. Problem for vz is that they cannot pay their own dividend unless they get it from vzw. rest is just posturing and sulking by vz. which is meaningless. best for VOD is to just sit tight.
CNBC & Bloomberg cited analysts that believe VOD wants to merge with VZ, whereas VZ only wants to buy VZW. This makes sense and could hold up any deal from happening.
VOD does not want to sell its best asset. VZW is growing and generates lots of cash. If they did sell, they would have to pay a huge value-killing tax. They want to invest more money in various EU assets, but what assets there could perform better than VZW? With the EU imploding, it makes sense for VOD to keep a globally diversified portfolio.
VZ wants all of VZW, but does not want to buy assets in the depressed EU and possible big problems in India. Merging VZ and VOD would face serious regulatory burdens, and it would be difficult to agree on value as well as board and management issues. After yesterday's statement, it's clear VZ does not want to buy or merge with VOD. They only want VZW.
It does appear that it's "best for VOD is to just sit tight" and continue to hold its best wireless asset, continue to receive growing VZW dividends and continue to pay nice dividends to its shareholders.
VOD is sitting in the sweet spot. It owns over 40% of VZ and does nothing but collect fat juicy div's from VZ. A deal will happen and VOD will come out the winner. The #s suggest a $35 price tag to VOD or a merger with VZ. VOD does NOT need to sell.