Verizon (VZ) Downplays Vodafone (VOD) Merger Speculation, Comments on iPhone

Verizon Communications Inc. (NYSE: VZ) CEO Ivan Seidenberg said that there is no reason to pursue with a merger Vodafone Group PLC (NYSE: VOD), which is its joint venture partner in the U.S. mobile network operator, Verizon Wireless.

There has been persistent speculation about a merger between the two companies or a buyout by Verizon. Currently Verizon Communications owns 55 percent of Verizon Wireless, while the remaining stake is owned by Vodafone.

"There's no compelling reason for investors to think this is an exciting thing to do," Seidenberg said.

Sources confirmed last month that the two companies had been in talks about a possible merger, buyout and dividend payout from the profit of Verizon Wireless. Verizon Communications has been focusing on using the unit’s profit to pay down its own debt.

"In the long term, minority interest partners in your business, you’d probably like to resolve that," Seidenberg added.

According to Seidenberg, the all-wireless business of Vodafone will become a disadvantage as the two companies move towards joining fixed and mobile services.

Seidenberg also commented on the rumors of Apple Inc. (NASDAQ: AAPL) bringing its vastly popular iPhone to the Verizon Wireless network. AT&T Inc. (NYSE: T) is currently the only U.S. wireless carrier with a deal to offer the iPhone.

"We have expressed to Apple an interest in doing it. We have explained that our network is capable of handling it," Seidenberg said, while adding that Apple will "do what they want when they do it."

Shares of Verizon are down 19 cents to $31.27 in late market movement on Tuesday.

You May Also Be Interested In

• Royal Caribbean completes $1.25B senior unsecured notes offering
• Evolution Petroleum closes $16M Midland Basin royalty acquisition
• LCNB Corp (LCNB) Declares $0.22 Quarterly Dividend; 4.5% Yield