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

by Christopher Freeburn | May 14, 2013 11:04 am

Verizon Wireless 2 300x199 Verizon Wireless to Pay $7B Dividend to Co Owners[1]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[2]) and Britain’s Vodafone (NASDAQ:VOD[3]), 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[4]. 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[5]) to launch a $245 billion takeover bid for Vodafone[6]. 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[7].

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

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/05/Verizon-Wireless-2.jpg
  2. VZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=VZ
  3. VOD: http://studio-5.financialcontent.com/investplace/quote?Symbol=VOD
  4. been interested in buying Vodafone’s stake in the business: http://investorplace.com/2013/01/verizon-sale-rumors-send-vodafone-shares-up-in/
  5. T: http://studio-5.financialcontent.com/investplace/quote?Symbol=T
  6. launch a $245 billion takeover bid for Vodafone: http://investorplace.com/2013/04/verizon-att-consider-biggest-takeover-in-history/
  7. an $8.5 billion dividend: http://investorplace.com/2012/11/verizon-wireless-to-pay-8-5b-dividend-to-shareholders/

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