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Vodafone Holds on to Verizon Wireless Stock

12:15 am on January 25, 2006 | Category: Business, Corporate, Telecom Services, Wireless

Financial numbers released yesterday by European mobile giant, Vodafone, have exceeded forecasts for both customer growth and overall revenue.

Some investors, however, were disappointed by the fact that Vodafone is shying away from plans to sell its 45% stake in US-based Verizon Wireless and distribute proceeds among shareholders.

Vodafone was able to increase its total user-base by a total of 7.1 million in the third fiscal quarter, with much of this gain coming from the US market. The idea of selling the Verizon Wireless shares is somewhat of a quick cash-grab, and would ultimately cancel out many of the companyâ€™s recent customer acquisitions.

Although the short-term disappointment around this move caused a quick 2.5% dive in the companyâ€™s stock price yesterday, most analysts seem to think that Vodafone is making the best possible decision.

British Steel pension fund manager, Jim Wright, says that the company is doing the right thing by keeping its Verizon stake in tact. â€œIt’s a fantastic asset and I wouldnâ€™t want them to sell it for anything other than a very, very high price,â€ he was quoted as saying.

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