Only if VZ shareholders don't hit the panic button. Telling Vz shareholders not to panic is like telling your grandmother to come to a heavy metal concert with you. Next stop 62 for Vz,lol.
I see the shares going down. There's going to be 60 billion in dilution coming VZ's way to pay VOD. Also, throw in another 70 billion in debt. Yes, they'll receive the total revenues from wireless, but they paid they're entire companies worth to do so.
You are either dumb as a rock or a #$%$. VZ never sees 62. only in your dreams.
It wont see 52 again for years. After giving $60B in brand new minted shares to Vodofone. And taking on $60B in new debt, who is going to buy Verizon shares to move it to 62? All the employees buying in there 401K each month? Hardly.
Oh and do you think that Vodaphone is going to stick its new shares in a safety deposit box and just collect dividends for the next 10 years are delusional too. First thing tomorrow morning you will see massive volume in Verizon options as Vodafone bankers put a collar on there new $60B position and will as quickly as they can find buyers (suckers), sell that position for cash for their own business activities, new investments, share buybacks, dividend payments.
If you have Verizon shares and like the dividend sell it and wait 2 months you will be able to buyback at a 20% discount and your yield will be even better.
Sentiment: Strong Sell
Let's all hope this hype is correct. You will remember if you are a long term shareowner - VZ was $67 in 1999. VZ is a very strong corporation and this deal will make it an even stronger business. GO VZ........................
I'm not that long term...
I'm more concerned of the dialog and agreements struck between VZ and VOD..
Seems a deal defined by VZ would be to buy up nearly all of VZ market cap at current price.
Seems a deal defined by VOD is cash/stock up to 53 to 54 bucks as that is what investor sentiment supports. The reason would be that VOD runs the risk of the share loosing value.
Realistically, compromise will rule the negotiation.
57% institutional holdings...
45% VOD holdings
Retails = -2%
Q. Deal requires accounting?
Q. Deal forces brokers to report?
VOD 45% stake worth 130B
Calculate the remaining 55% value as follows
.55 x 130B / 130B ~ 159B
Current Market Cap ~ 136B
VZ is thus ~ 17% undervalued at current price based on value of stock Verizon perceives it to be
This statement is similar in determining the value an insider is willing to pay for the stock.
$ 55.43 calculated target
Verizon achieved a stock price of $53.91 on 4/30/13
Article "Verizon Poised to Announce"
... Breaks down the deal. Key info is that the deal requires VZ to do a cash and stock exchange. The stock exchange converts a portion of VOD state from a partnership vetween VOD and VZ over asset VZ.Wireless to a VOD stake in a investor share relationship.
Bottom line is that VZ has to purchase shares from the market. It is likely VZ will be halted so VZ may buy up all shares up to the value in the $53 dollar range + a tad more based on accounting of interest
Projected open at $54......
Your numbers are correct IF 130 billion is an accurate value for the VOD share of VZ. But the calculations are incorrect IF VZ overpaid for VOD. That is the ultimate question.