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Tuesday, May 14, 2013

Verizon sees no need for mobile venture cash to fund dividend, (NASDAQ: VOD), (NYSE: VZ)

Verizon Communications Inc does not need more cash from its wireless venture with Vodafone Group Plc to support its own dividend payments, Verizon Chief Financial Officer Fran Shammo said on Tuesday.Shammo also said future dividends from Verizon Wireless would be leaner than in the past. Verizon controls the venture's dividend payments and analysts have speculated that it could use this control to pressure Vodafone into selling its Verizon Wireless stake. Verizon owns 55 percent of the wireless venture.Shammo made the comments at a conference the day after Verizon Wireless, which is 45 percent owned by Vodafone, declared a $7 billion dividend. In comparison, Verizon Wireless paid its parents $18.5 billion in 2012, in two installments."If I needed the cash from wireless to pay a dividend I'd take the cash but I don't see us needing the cash," Shammo said.

Vodafone Group Plc (Vodafone) is a mobile communications company operating across the globe providing a range of communications services. Shares of VOD fell by 0.03% or $-0.01/share to $29.65. In the past year, the shares have traded as low as $24.42 and as high as $30.07. On average, 13880000 shares of VOD exchange hands on a given day and today's volume is recorded at 11207944.

Verizon Communications Inc. (Verizon) is a holding company. Shares of VZ traded higher by 0.69% or $0.36/share to $52.91. In the past year, the shares have traded as low as $40.51 and as high as $54.31. On average, 13740000 shares of VZ exchange hands on a given day and today's volume is recorded at 4882528.



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