Could push share price to 310p
Analysts at research firm Sanford C. Bernstein believes Britain’s Vodafone could be soon be a takeover target once the Verizon deal has gone through. With its 45 per cent stake in Verizon Wireless no longer part of the equation, analysts believe Vodafone will be small enough to be swallowed whole by the likes of America’s AT&T which as long been looking to expand into Europe, or Japanese telco, SoftBank, which earlier this year acquired a 70 per cent controlling stake in US rival Sprint for $21.6 billion.*
It’s reckoned that if Vodafone does attract takeover interest, the cost of acquiring its rump could be about £80 billion ($124 billion).
That’s slightly smaller than the $130 billion paid by Verizon Communications to buy out Vodafone’s share of their joint US venture.
But any such move by suitors could also push Vodafone shares to as much as 310 pence.
Meanwhile, following news of the Verizon deal, Vodafone has had its debt rating upgraded to stable by Standard and Poor, removing the risk that it could be downgraded in coming months.
The credit rating agency reckons Vodafone will use the huge windfall to reduce its total debts by £14 billion.
Last night (5th September 22013) in London, Vodafone’s share price closed at 210 pence, nearly 2 per cent up on the day.
*Footnote: Carlos Slim’s América Móvil is another potential suitor.