BofA Believes AT&T Could Help Verizon Buy Vodafone, Lifts Target on Verizon to $50
As Verizon is not interested in all Vodafone assets, it's unlikely a deal for all of Vodafone would be done, according to Barden. AT&T has the ability to buy Vodafone's non-U.S. business for around $70 billion, sweetening the picture for Verizon.
Barden called any potential three-way deal likely to be “time consuming.” This would allow Verizon to get full control of Verizon Wireless (VOD owns 45 percent), while Vodafone gets a premium for the portfolio and AT&T gets “global scale” (potentially accretive to cash flow).
Shares of Verizon remain Neutral at BofA; the firm's price target rose from $45 to $50.
Verizon shares are at $47.95, down 1.09 percent in midday trading. Shares of Vodafone are at $27.78, down 0.07 percent.
Latest Ratings for T
|Aug 2015||Buckingham Research||Maintains||Buy|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.