Verizon Wireless to Pay $7B Dividend to Co-Owners

Verizon wants to acquire Vodafone's stake in the joint venture

   

Verizon Wireless to Pay $7B Dividend to Co-Owners

Verizon Wireless 2 300x199 Verizon Wireless to Pay $7B Dividend to Co OwnersIn documents filed with regulators on Monday, Verizon Wireless said it will pay its co-owners a hefty dividend.

The largest U.S. wireless carrier, which is jointly owned by Verizon Communications (NYSE:VZ) and Britain’s Vodafone (NASDAQ:VOD), will pay its stakeholders a $7 billion dividend on June 25. Verizon will receive $3.85 billion. The remaining $3.15 billion will go to Vodafone, Bloomberg notes.

money bag 630 200x200 Verizon Wireless to Pay $7B Dividend to Co Owners
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Earlier this year, Verizon executives had signaled that such a dividend might not be paid this year. Verizon owns 55% of Verizon Wireless and has reportedly long been interested in buying Vodafone’s stake in the business. The move was seen as a applying financial pressure to Vodafone to persuade it to sell its stake.

Last month, reports circulated that Verizon was partnering with AT&T (NYSE:T) to launch a $245 billion takeover bid for Vodafone. Under that deal, Verizon would get all of Verizon Wireless and AT&T would purchased Vodafone’s overseas operations.

In 2012, Verizon Wireless paid its owners an $8.5 billion dividend.

Shares of Verizon rose fractionally in Tuesday morning trading, while Vodafone fell modestly.


Article printed from InvestorPlace Media, http://investorplace.com/2013/05/verizon-wireless-to-pay-7b-dividend-to-co-owners/.

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