Reports that Vodafone Group plc (NYSE:VOD) could bid for Deutsche Telekom AG's T-Mobile U.K. unit have revived questions about the British carrier's joint venture in the U.S.: Would Vodafone exit its Verizon Wireless partnership with Verizon Communications Inc. (NYSE:VZ), and, if so, how much is its stake worth?
Vodafone holds a 45% stake in the Bedminster, N.J., wireless joint venture. Verizon holds the remaining stake and has in the past said it would be happy to buy out its partner.
FBR Capital Markets Corp. suggests in a Monday research note that Vodafone could put the cash from a Verizon Wireless sale toward buyouts, spectrum license purchases, network construction or debt reduction.
At 5.5 to 7 times Verizon Wireless' estimated $25.2 billion in Ebitda, FBR estimates Verizon Wireless as a whole would be worth $139 billion to $177 billion. That would value Vodafone's position at $62.5 billion to $80 billion. -
Chris Nolter
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