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HONG KONG (CNNMoney)
British telecom giant Vodafone said Monday that it is in advanced discussions to sell its stake in Verizon Wireless back to America's largest wireless provider.
The deal, valued at $130 billion, would give Verizon 100% control of Verizon Wireless if completed. Vodafone (VOD) currently owns 45% of the venture.
Vodafone cautioned that there is no guarantee that an agreement will be reached, but said that the deal would consist of a mixture of Verizon common stock and cash.
"A further announcement will be made as soon as practicable," the company said in a statement. Verizon declined to comment.
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If completed, it will be one of the largest deals in corporate history. Vodafone paid a record $180 billion for Germany's Mannesmann in 2000.Verizon (VZ) has expressed desire in controlling all of Verizon Wireless for years, but rumors that such a deal was about to get done have increased over the past few months.
Verizon Wireless is the most profitable U.S. wireless carrier, and Verizon wants total access to that firehose -- not just 55% of it.
The wireless business is the only reason the company is growing: Landlines are dying, and Verizon has stopped building out its FiOS Internet and television infrastructure.
The British company could use the proceeds to pay down debt. It may also return a substantial portion to shareholders.
Vodafone's possible exit from the U.S. comes as the telecoms group deepens its presence in Europe. In June, Vodafone outbid Liberty Global and paid $10.1 billion to buy German cable operator Kabel Deutschland. That purchase should allow it to continue growing in the German market by cross-selling TV and broadband services to its existing customers.
The deal comes at a time of consolidation for the wireless industry. MetroPCS and T-Mobile (TMUS) recently completed their complex merger, and Softbank bought Sprint (S) in July.
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