Vodafone investors to learn Verizon share allocation tomorrow – consensus backing both shares

18th February 2014

Vodafone investors will learn their Verizon share allocation on Wednesday this week with the cash allocation announced on Friday, 21st February. Share trading will commence on Monday 24th February and cash allocated on Wednesday, 5th March.

Richard Hunter, Head of Equities at Hargreaves Lansdown says: “Despite some trading issues in parts of Europe and India, and the fiercely competitive nature of the industry, the long-term prospects for both the Vodafone and Verizon businesses look strong.

“Investors will be receive their shares on Monday and be able to trade Vodafone from 8.00 am and Verizon from 2.30 pm. Under the terms of the deal, the cash allocation will not be settled until the 5th March.” The broker has also summarised the market consensus about both shares.

Verizon

The deal acquiring Vodafone’s 45% stake in Verizon Wireless is seen to be strategically transformative, whilst its announcement of the further purchase of Intel’s pay TV start up should enhance its video over high speed connections presence.

Despite concerns over the intensity of competition in the sector and the increasing significance of smartphones, the current market consensus for the shares is a buy.

Vodafone

The current market consensus is that the shares are a buy. The potential war chest Vodafone will be acquiring following the Verizon disposal (it is returning only an estimated £54bn of the £84bn stake) could position it for further acquisitions such as the recently completed Kabel Deutschland deal. Indeed recent reports suggest Vodafone is eyeing up Spanish broadband operator Ono for a deal worth £7bn. There have also been rumours that Vodafone itself could become a bid target following the demerger.

 

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