• October 9th, 2013
  • Darren Kingman
  • BusinessNews
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Vodafone sponsoring F1. Is this where all the money goes?It’s been a long running feud in the telecoms world, with Vodafone being 45% major shareholders in Verizon. The heads in charge had calmed the storm that was brewing some time ago, based around an unknown answer to a very important question regarding total control. The answer has now been given and it comes in the form of Verizon paying a total package of cash and stocks to Vodafone. Making the grand value of the deal $130b – approximately £80b.

The deal is widely acknowledged to be best for both companies. Verizon can focus solely on 100% of the business without the need to discuss and agree with Vodafone. And Vodafone receive the third biggest package in corporate history, allowing them to reinvest in their European market and specifically their fast data driven services. However, there is also the fact that Vodafone shareholders are still attempting to sue the company but seeing as the company has given £61b to them since 2005, making them the most generous dividend paying company in the entire FTSE 100, you wonder what grounds they have.

This deal, amongst others this year which we’ve spoken about previously, sees the first 10 months of 2013 become the highest in terms of merger values in 6 years – raising the question, will it be the highest ever with just under 3 months left? Investment bankers are certainly hoping so.