Verizon board to vote Monday on Vodafone deal - sources

Reuters
Women use their mobile phones in central London August 30, 2013.
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Women use their mobile phones in central London August 30, 2013. REUTERS/Olivia Harris

LONDON/NEW YORK (Reuters) - The board of Verizon Communication (NYS:VZ) will meet on Monday to vote on a $130 billion deal to buy out Vodafone (LSE:VOD) from its joint venture, meaning a full announcement could come after the London market close, sources said.

One person familiar with the situation said the board meeting would be held on Monday morning New York time and three people said this meant the terms of the deal would likely be announced after the London market closes at 1530 GMT.

Both the telecom giants declined to comment. The Vodafone board had been due to meet on Sunday, sources said, but it was not clear what their decision was.

Sources told Reuters on Saturday that Verizon plans to pay for half of the purchase with its own stock. For the rest, it has tapped JPMorgan Chase & Co (NYS:JPM), Morgan Stanley (NYS:MS), Barclays Plc (LSE:BARC) and Bank of America Merrill Lynch (NYS:BAC) to help raise the funds through a mix of bonds and bank loans, the sources said.

The banks have committed to the financing that is expected to be split evenly among the four.

One person familiar with the proceedings said on Sunday that Vodafone would get $60 billion in cash, $60 billion in Verizon stock, and an additional $10 billion from other smaller transactions that will take the total deal value to $130 billion. (Reporting by Kate Holton, Soyoung Kim, Michelle Sierra and Sinead Carew, editing by Mike Peacock)

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