Monday, September 9, 2013
Why Verizon Investors Shouldn't Be So Excited About The Verizon Wireless Deal
Last week Verizon (VZ) and Vodafone (VOD) reached the historic deal for Verizon to obtain sole ownership of the much coveted Verizon Wireless asset. Regardless of your position on the transaction, the stock action of the two stocks since the leak of the purchase discussions at the end of April tells the story.
In the couple of years prior to the news of the talks heating up, Verizon had easily outperformed Vodafone. Remember that Verizon owns 55% of Verizon Wireless while Vodafone owns the rest. Partially due to the focus on the better performing US market, Verizon had easily outperformed Vodafone over that time period. This fact was greatly enhanced due to Vodafone being focused on Europe and emerging markets outside of the Verizon Wireless ownership.
Read the full article at Seeking Alpha.
Disclosure: Long VOD. Please review the disclaimer page for more details.