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Sunday, September 8, 2013

Verizon sued by shareholder over $130 billion Vodafone wireless deal, (NYSE: VZ)

Verizon Communications Inc has been sued by a shareholder seeking to void its $130 billion takeover of Vodafone Group Plc's stake in the companies' wireless joint venture on the grounds the price is too high. In a lawsuit filed in a New York state court on Thursday, just three days after the transaction was announced, Natalie Gordon said Verizon shareholders are being "shortchanged" by the purchase of Vodafone's 45 percent stake in Verizon Wireless, the largest U.S. mobile phone operator.Verizon, which owns the other 55 percent, agreed to pay Vodafone $59 billion in cash, $60 billion in stock and other sums. Verizon Wireless has about 100 million customers.Gordon said "it is evident that Verizon has overpaid," adding that "Wall Street analysts concur" and that Moody's Investors Service downgraded Verizon's credit.She also pointed to a drop in Verizon's share price to $45.08 on Sept. 3, the first trading day after the purchase was announced, from a peak of $48.60 on Aug. 29, when news that Verizon and Vodafone had revived talks surfaced. The lawsuit characterized the 7.2 percent decline as "almost 10%."

Verizon Communications Inc. (Verizon) is a holding company. Shares of VZ fell by 0.64% or $-0.3/share to $46.34. In the past year, the shares have traded as low as $40.51 and as high as $54.31. On average, 11615200 shares of VZ exchange hands on a given day and today's volume is recorded at 13435465.



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