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Verizon pressures Vodafone with dividend threat - report
2013-05-03 11:26:00| Telecompaper Headlines
(Telecompaper) Verizon CEO Lowell McAdam said the operator's priority for cash is paying off debt coming due rather than pay-outs to shareholders. The comments, reported by the Wall Street Journal from an investor meeting, appear aimed at putting pressure on Vodafone to consider Verizon's proposal of selling its 45 percent stake in their joint venture Verizon Wireless. Specifically, McAdam said the priority for Verizon Wireless's cash flow will be to pay down the USD 5 billion in debt coming due by mid-2014 before making pay-outs to owners. The comments were reported in a note by JP Morgan Chase analyst Philip Cusick, who hosted the meeting 30 April, and confirmed by a person familiar with the matter to the paper. At the meeting with investors, McAdam said the company remains interested in buying Vodafone's stake in Verizon Wireless but doesn't believe a premium is warranted. The CEO also told investors that the company could look to international investments or acquisitions as another way to provide growth over the long term.
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Category:Telecommunications