Investors were buoyed by news from Vodafone (LSE: VOD) (NASDAQ: VOD.US) that it wouldn’t reject any offer for its stake in Verizon Wireless out of hand.
The words came from no less than group chairman Gerard Kleisterlee, who was speaking at Vodafone’s annual meeting in London. Kleisterlee did, however, announce that there was no further developments to speak on on that front.
Verizon Communications reiterated its desire to buy Vodafone’s stake earlier this month, and repeated its belief that it doesn’t believe a deal would incur heavy taxes for the seller, which is thought to be the main stumbling block of any transaction.
Some shareholders have feared that the current price — up over 20% in the last six months — would plummet, should Vodafone repel any incoming offer for its 45% interest in the joint-venture with Verizon, so the comments coming from the UK telecom’s camp ought to calm itchy trigger fingers for the time being.
However, Vodafone has been broadening its reach in the meantime, one example being its bid for German cable company Kabel Deutschland, and it’s still embarking on a share buyback scheme, which ought to support the share price. Throw in a yield in excess of 5% even if a special dividend from a Wireless sale doesn’t come to fruition, and I’m happy to hold the stock despite the outcome.
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> Sam owns shares in Vodafone. The Motley Fool has recommended shares in Vodafone.
