Vodafone: Betting on an Economic Rebound in Europe
Back in September, Vodafone (NASDAQ: VOD ) agreed to sell its 45% stake in Verizon Wireless to majority owner Verizon Communications (NYSE: VZ ) for the astonishing amount of $130 billion. The deal has sent Vodafone soaring to a valuation of $180 billion, and in the process, reduced the dividend yield to around 4.2%.
Outside the Verizon Wireless investment, Vodafone is a large wireless provider in the major European countries of Germany, the Netherlands, U.K., Italy, and Spain along with select investments in Africa and Asia. The company has roughly 500 million wireless subscribers around the world making it one of the largest mobile carriers. With the Verizon Wireless deal heading toward completion, the market is starting to wonder if Vodafone can justify its current price.
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