Quite frankly, we never saw the synergies
Shares in Vodafone surged in the UK to 204 pence – which is a 12 year high, after it was officially confirmed that Vodafone is in talks with Verizon Communications of the USA. Vodafone actually owns a 45 per cent chunk of Verizon Wireless as the result of a much earlier acquisition of the US based network Airtouch in 1999. We couldn’t see the logic in Vodafone holding a stake in a cdmaOne based network when its expertise lay with GSM based networks. Well, it may receive as much as £84 billion ($130 billion) for its stake which is higher than Vodafone’s current capitalisation. So hanging on in there has paid off.
With such an enormous windfall, there is bound to be speculation about what Vittorio Colao is going to do with all those dollars.
There are loads of suggestions for buying mobile operators around the world or fixed line operators in Europe.
GoMo News has no idea whether it might not make financial sense to keep some dollars in the USA and acquire a small GSM based network operator.
It could then use its clout with infrastructure and handset vendors to make a small scale operation more profitable, perhaps?
There’s also another scenario. With such a windfall in the offing, somebody could make a bid for Vodafone itself.
How about Carlos Slim of América Móvil? After all, his bid for European operator KPN isn’t going that well at all.