Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, September 6, 2013

Article Excerpt

VERIZON COMMUNICATIONS INC., $46.34, New York symbol VZ, has agreed to buy the 45% of Verizon Wireless that it doesn’t already own from U.K.-based Vodafone Group plc (Nasdaq symbol VOD). Verizon Wireless is a joint venture that sells wireless services to 100.1 million subscribers in the U.S. In the second quarter of 2013, it supplied 67% of Verizon’s revenue and 80% of its earnings. The company will pay $130 billion for Vodafone’s stake. That’s almost as much as Verizon’s $132.6-billion market cap (or the total value of all its outstanding shares). Under the deal, Verizon will pay $58.9 billion of the purchase price in cash. It has already secured $61 billion in new loans. In addition, the company will issue $60.2 billion of new common shares to Vodafone shareholders. The price of these shares will range between $47.00 and $51.00. Following the transaction, Vodafone shareholders will own between 29.2% and 30.9% of Verizon. Verizon will also issue a $5.0-billion note to Vodafone and…