Verizon Stalking an Elephant After Vodafone: Blair

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Aug. 29 (Bloomberg) -- Jason Blair, analyst at Telsey Advisory Group, examines what's behind Vodafone's push to sell its 45 percent stake in Verizon and how the deal may position Verizon for bigger things in the future. He speaks on Bloomberg Television's "Bloomberg Surveillance."

This headline of a $130 billion deal.

I have a media analyst joining us on the phone from new york city.

What is the impetus here.

This is financial conditions or something that is happening in the u.s. cell phone market?

There is really not much of a scale advantage for vodafone to have this 45% equity stake in horizon and -- verizon.

It values the dividend higher.

It already controls verizon wireless.

Only 100% is a financial decision.

If they can do the deal at $130 billion, that is about eight times even.

That is a good deal from one of the biggest communications companies in the world.

They have tried to make this deal many times.

What is different this time?

The 110 basis point rise has been placing pressure on verizon to get the deal done.

It is one of the most unlevered companies.

Just over two times ebitda.

That has got to be a signal for investors.

It is clear that verizon is stalking an elephoan.

-- elephants.

-- elephant.

Let me get your attention.

Vodafone in the last 10 years has outperformed verizon.

They have 91,000 employees.

Verizon has double that.

What do i need to know about vodafone?

It is a gigantic mobile phone company in europe.

They have a new ceo since 2007, which they needed.

This company was put together in 2000. the size of the merger was 150 billion euros.

It was a huge deal in 2000. the ceo came in in 2007.

This text has been automatically generated. It may not be 100% accurate.


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