Vodafone unhappy about its stake in Verizon Wireless?
Vodafone's chief executive, VittorioColao, isn't sitting around the sidelines anymore watching things goby without any say in the matter of their stake in Verizon Wireless.It seems that he is frustrated that Verizon, which has about 87.7million customers and took in $58.6 billion in revenue last year, hasnot come out to show even one paid dividend in four years. Vodafoneof course has a major stake in Big Red at 45 percent. Surprisingly ata recent Goldman Sach's media conference in New York, Colao statedthat “Verizon Wireless is and has been a good investment.” It'snot just Colao who raised ears, but Vodafone's board continues tore-look at the situation – they examine other options “regularly”,but “for the time being we are here.” Vodafone's financedirector, Andy Halford, has indicated that Verizon may soon startpaying out dividends in late 2011 – hopefully before they startclearing out their $30 billion in debts. Vodafone has been hit hardwith the tough economy and the dwindling revenue as consumers cutback on mobile phone calls. They're prone amid this downturn and planon making some some job cuts in the next couple of months. We'll haveto wait and see if they plan on sticking around with their jointventure with Big Red.
source: Telegraph.co.uk
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