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You can find the current article at its original source at http://www.theguardian.com/business/2013/aug/29/vodafone-shares-surge-verizon-talks-back-on
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| Vodafone shares surge as Verizon talks back on | Vodafone shares surge as Verizon talks back on |
| (35 minutes later) | |
| Vodafone has restarted talks over the disposal of its 45% stake in Verizon Wireless, the largest mobile network in the US. | |
| Fixed-line telecoms group Verizon Communications owns the balance of the company and has been campaigning for years to take full control. | |
| Vodafone on Thursday confirmed a report in the Wall Street Journal that Verizon had succeeded in reigniting discussions, which lapsed earlier this year after the owners failed to agree on price. | Vodafone on Thursday confirmed a report in the Wall Street Journal that Verizon had succeeded in reigniting discussions, which lapsed earlier this year after the owners failed to agree on price. |
| In a statement the company said: "Vodafone notes the recent press speculation and confirms that it is in discussions with Verizon Communications Inc regarding the possible disposal of Vodafone's US group whose principal asset is its 45% interest in Verizon Wireless. There is no certainty that an agreement will be reached." | |
| Rising interest rates and new competitors to Verizon emerging in the US are reported to have persuaded the companies back to the negotiating table. It is understood Verizon has already approached Wall Street banks about raising the cash needed to fund the buyout. | Rising interest rates and new competitors to Verizon emerging in the US are reported to have persuaded the companies back to the negotiating table. It is understood Verizon has already approached Wall Street banks about raising the cash needed to fund the buyout. |
| City analysts believe Vodafone could secure as much as $130bn (£80bn) for its share, enough to pay off the company's debt, reward shareholders with a dividend and fund acquisitions to advance Vodafone's ambitions of supplying broadband and television services in certain markets alongside mobile network connections. | City analysts believe Vodafone could secure as much as $130bn (£80bn) for its share, enough to pay off the company's debt, reward shareholders with a dividend and fund acquisitions to advance Vodafone's ambitions of supplying broadband and television services in certain markets alongside mobile network connections. |
| In discussions earlier this year, Verizon was understood to be offering around $100bn, a sum that failed to sway Vodafone's board and its shareholders. | In discussions earlier this year, Verizon was understood to be offering around $100bn, a sum that failed to sway Vodafone's board and its shareholders. |
| But Vodafone executives have voiced concerns that the windfall from such a sale could trigger a significant tax bill. | But Vodafone executives have voiced concerns that the windfall from such a sale could trigger a significant tax bill. |
| Vodafone's chairman, Gerard Kleisterlee, indicated at the company's annual meeting in July that he was open to an improved offer for the US asset. | |
| "If we see proposals that generate more value for shareholders we will consider them," Kleisterlee said. | "If we see proposals that generate more value for shareholders we will consider them," Kleisterlee said. |
| Shares in Vodafone jumped just over 9% on confirmation of the talks, to a 12-year high of 207p. | Shares in Vodafone jumped just over 9% on confirmation of the talks, to a 12-year high of 207p. |