So the boys in The City are telling me that the recent look-see of Verizon by Vodafone isn’t the real McCoy. Here’s what my London sources are telling me.
1. Vodafone and AT&T are doing more than racing at the Grand Prix of Formula 1 events. It seems that the talking going on at those events is about one thing. M&A.
2. If the M&A happens the initial game plan is to have AT&T be the surviving entity, with AT&T being the buyer.
3. There is a hitch, and that’s if the price of Vodafone stock hits a certain point, rumoured to be 300 p then the tables are turned and Vodafone may be come the suitor. This is less likely due to the challenges that will be posed on having a foreign entity in control of the USA’s largest telecommunications provider.
4. Now you say, “but Andy, Vodafone already owns a large chunk in Verizon. Won’t this be another hurdle.” To that I say, Vodafone and AT&T buy up the controlling interest in Verizon Wireless then turn it over to the investment bankers to sell it to the private equity folks.
Ah the joys of summer…..Now back to your regularly scheduled programming.