Vodafone: we’re going to hold on to our stake in Verizon Wireless

When you’re the largest wireless carrier on the planet, every little move (let alone any rumors of future decisions) are scrutinized and speculated about by shareholders and analysts alike. And, by the world’s largest carrier, we’re talking about Vodafone Group PLC. Recent speculation had Vodafone contemplating selling off a portion of their 45% minority-stake in Verizon Wireless to Verizon Communications (which hold the remaining 55% stake). The move has been pushed by a rebel shareholder group, Efficient Capital Structures, that believed the sell-off would leave Vodafone in a better position to capitalize on European and Asian markets.

Today, Vodafone put an end to all speculation with their announcement that they will not be exercising their put option to sell of $10 billion worth of its stake in Verizon Wireless. Vodafone released a statement to the London Stock Exchange saying, “Verizon Wireless is a market-leading business with strong growth prospects and the board of Vodafone continues to believe that retaining its full 45 per cent interest is in the best interests of shareholders.”

So, it looks like Vodafone will be keeping their fingers in the US-carrier-cookie-jar for the time being. It’s gotta be nice sitting at the head of the wireless-carrier-table.

[Via: MSNBC]