Vodafone Group plc (LON:VOD) surpasses previous peak of 191p following fresh M&A talk.
Vodafone (LSE: VOD) (NASDAQ: VOD.US) continued its recent climb, rising 5.4% to reach 196.65p, off the back of further speculation surrounding Verizon Communications mulling its options regarding Vodafone's shares in their joint-venture Verizon Wireless.
The move in share price comes following reports from the Financial Times Alphaville blog that Verizon and AT&T have been working on a 'share break-up bid', valuing Vodafone at 260p per share, around $245bn. This would surpass AOL and Time Warner's $165bn merger, and even Vodafone AirTouch's acquisition of Mannesmann AG for $202.8bn in 1999, the current record holder.
Vodafone's shares had previously reached 191p in early August 2012, with today likely to end on a new five-year high. Following the recent rumours, the telecoms company's share price has climbed as the market appeared to have new-found hope for the stock. And on a price-to-earnings ratio of below 12 and a healthy yield forecast of 5.1%, well above the FTSE 100’s average of around 3-3.5%, it's not hard to see why.
Rising over 46p to 6,458p at the time of writing, the news has helped push the FTSE 100 back towards its own five-year high of 6,533.99, reached on 12 March.
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> Sam owns shares in Vodafone. The Motley Fool has recommended shares in Vodafone.