Verizon eyeing Sprint?

One thought on “Verizon eyeing Sprint?”

  1. Allan speaks prematurely.

    What runs out is the contractually mandated cash dividend payment formula in the VOD-VZ shareholder agreement.

    To which I say, BFD!!!

    VZW produces the most cash in wireless, they have the lowest CPGA, the lowest churn, etc.

    Plus, VZW already outspends the others in CAPEX.

    Thus there is nothing else to do with the CASH from VZW than to payout dividends.

    Furthermore it should be intuitively obvious that if VZW were to stop dividend payments to VOD, that means payments would also stop to VZ. Me thinks VZ likes the dividend payment just as much as VOD, if not more…

    So like I said, BFD.

    VOD holds all the cards here.

    They got played by VZ last year in the AWE bidding game, and VZ needs their approval to even think about buying Sprint.

    So, VZ should do the smart thing and just counter SBC for T, or do enough DD so shareholders can’t sue for the do nothing option.

This site uses Akismet to reduce spam. Learn how your comment data is processed.