by Christopher Freeburn | May 14, 2013 11:04 am
In 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.
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.
Source URL: http://investorplace.com/2013/05/verizon-wireless-to-pay-7b-dividend-to-co-owners/
Short URL: http://invstplc.com/1fzfzWZ
Copyright ©2014 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.