Vodafone agrees to sell Verizon stake for $130 billion

Reuters

LONDON (Reuters) - Vodafone (LSE:VOD) agreed to sell its 45 percent stake in U.S. mobile operator Verizon Wireless to Verizon Communications (VZ.N) for $130 billion, bringing an end to one of the longest running corporate standoffs with the world's third-largest deal.

Under the agreement announced on Monday, which will leave Verizon with 100 percent of the largest mobile operator in the U.S., Vodafone will receive $58.9 billion in cash, $60.2 billion in Verizon stock and an additional $11 billion from smaller transactions.

At completion in the first quarter of 2014, Vodafone shareholders are expected to receive all the Verizon shares and $23.9 billion of cash, which comes to $84 billion flowing back to shareholders.

"The board, therefore, intends to increase the total 2014 financial year dividend per share by 8 percent to 11 pence, and intends to grow it annually thereafter," Vodafone said.

(Reporting by Kate Holton; editing by Leila Abboud)

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