Verizon Seeks to Buy Out Vodafone’s Wireless Unit

Vodafone, the British telecommunications giant, confirmed that it was in talks to sell to Verizon its 45 percent stake in Verizon Wireless, analysts say Verizon’s purchase of the 45 percent of Verizon Wireless it does not already own would help the company to dictate strategy as it looks to invest billions of dollars in high-speed data infrastructure.

To justify what would be one of the largest deals in history, Verizon would have to be confident that the growth of Verizon Wireless will remain consistently strong, he said. By contrast, Vodafone would have to believe that the American wireless business is stagnating and that Verizon Wireless cannot grow much more,“Vodafone faces a strategic challenge in its European business,” said Mr. Marsch of Berenberg Bank. By selling its 45 percent stake in Verizon Wireless, Vodafone could receive a large war chest to finance potential acquisitions and renewed investment in so-called fourth-generation wireless networks.

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