By Will Sturgeon, 15 January 2002 07:48
NEWS Uncertainty over the IPO of Verizon Wireless is likely to be causing headaches at Vodafone's headquarters. Vodafone holds a 45 per cent stake in the US mobile operator, which accounts for around 20 per cent of the UK giant's annual earnings and a third of its valuation. But fears the IPO of its US interest is in danger of becoming an 'on-off-on-again-off-again' saga have caused analysts to start looking for cracks in the previously sound relationship between Vodafone and Verizon Communications, which holds the remaining majority stake in Verizon Wireless. Verizon Wireless had originally hoped to IPO in the summe. However the Wall Street Journal reports its parent company is now in "no rush" to proceed, due to the low valuations of mobile operators in the US. No renewed timetable for the flotation is being offered. A lack of presence of the Vodafone brand in the US is an ongoing concern of CEO Chris Gent and any delay in the Verizon Wireless IPO can only push back Gent's long-term plan of taking a controlling stake in the company so that it can be brought under the Vodafone banner. Verizon Wireless holds the largest number of US 3G licences, including those in lucrative areas such as New York - a factor likely to make Vodafone restless in its pursuit of a controlling share in the company.
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