Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Vodafone Group Pushes 10-Year High on Fresh Verizon News

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

LONDON -- Shares in Vodafone  (LSE: VOD  ) (NASDAQ: VOD  ) jumped up to over 195 pence in early trade, after yesterday's positive trading update from Verizon Communications  (NYSE: VZ  ) supplemented the U.K.-based telecoms company's recent price. 

Management at Verizon played down the significance of Vodafone incurring a huge capital gains tax bill from the potential sale of its 45% interest in joint-venture Verizon Wireless, with chief financial officer Francis Shammo commenting: "We are extremely confident that such a transaction could be accomplished in a manner that is very tax efficient and would not result in a tax on the gain in that stake."

The statement came after Verizon revealed in an interim management statement that profits in its wireless business were higher-than-expected during the first quarter, a 16% increase year on year aided by lower costs and continued growth, as Verizon Wireless added 677,000 retail subscribers in the first quarter against previous expectations of approximately 634,000.

The joint-venture between Vodafone and Verizon is worth around 80 billion pounds, and the tax issue has been widely recognized as one of the main stumbling blocks preventing a sale that could prove very lucrative to shareholders. Recent weeks have seen Verizon rule out a 130 billion pound all-out bid with AT&T for Vodafone, but the rumors have persisted.

The comments coming from across the pond suggest that we could be getting nearer an outcome in these protracted negotiations -- and the market has reacted accordingly, pushing Vodafone's share price up and could well exceed its 10-year high during trading today.

Vodafone's shares had previously reached an end-of-trading high of 192 pence at the beginning of the month, before dropping off after the bid speculation was refuted. Following the recent rumours, though, the telecom company's share price has climbed as the market appeared to have newfound hope for the stock. And on a price-to-earnings ratio of below 12 and a consensus forecast of a 5.4% yield, well above the FTSE 100's average of around 3%-3.5%, it's not hard to see why.

If you are looking for opportunities in the FTSE 100 outside of Vodafone, though, this exclusive wealth report reviews five particularly attractive alternatives.

All five of these blue-chip companies offer a mix of robust prospects, illustrious histories and dependable dividends, and have just been declared by the Motley Fool's top analysts as "5 Shares You Can Retire On." The report is completely free, but will only remain available for a limited time -- simply click here to get it sent to your inbox immediately.

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2373241, ~/Articles/ArticleHandler.aspx, 10/25/2016 11:45:05 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,185.26 -37.77 -0.21%
S&P 500 2,145.74 -5.59 -0.26%
NASD 5,292.59 -17.24 -0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/25/2016 11:29 AM
VOD $27.85 Up +0.18 +0.65%
Vodafone CAPS Rating: ****
VOD $225.80 Up +2.40 +1.07%
Vodafone CAPS Rating: No stars
VZ $47.99 Down -0.23 -0.47%
Verizon Communicat… CAPS Rating: ****
T $36.77 Down -0.10 -0.26%
AT and T CAPS Rating: ****