Verizon talk boosts Vodafone shares

Speculation over the future of Vodafone’s stake in US mobile phone business Verizon Wireless fuelled a £5bn jump in its share price today.

The company holds 45% of America’s largest network but with reports suggesting majority owner Verizon Communications wants full control of the business its shares rose by as much as 6%.

A full merger of the two companies is one option, although according to newswire Bloomberg talks broke down in December because of disagreements over leadership and the location of new headquarters.

Vodafone was valued at £82bn prior to today’s rally and Verizon is worth £90bn, making any such merger the biggest in history. However a straight sale of Vodafone’s stake in Verizon Wireless is seen as the most likely outcome.

No talks are currently taking place, according to the speculation, but it is thought that Verizon remains keen to gain greater control over its most profitable division.

Vodafone is likely to use the proceeds from any sale on a major European deal or a return of cash to shareholders.