Vodafone's Dilemma: How to Spend a 12-Figure Bank Account
What would you do with a $100 billion payday? European wireless carrier Vodafone Group may go on a shopping spree, and two large communications companies could be at the top of its list.
My colleague Amy Thomson in London reported today that Newbury, England-based Vodafone will have more cash than every other non-finance company after Apple when it sells its stake in Verizon Wireless, which it's expected to do. The deal will give Vodafone $100 billion, enough to pay a big dividend to investors and snap up some large companies -- with plenty of room to spare.
Two targets could include Germany’s largest cable operator Kabel Deutschland, which has a market value of $8.3 billion, and billionaire John Malone’s Liberty Global, which has telecommunications assets throughout Europe and Latin America. The deals would expand Vodafone's ability to sell voice, TV and Internet services as a package. The companies all declined to comment.
Either way, Vodafone's pocketbook is about to get a lot bigger. And as Apple has discovered, it's hard to amass a twelve-figure cash horde without getting a lot of advice about how to spend it.