$8.5 Billion Payout Headed from Verizon Wireless to Verizon and Vodafone
Verizon Communication Inc. (NYSE: VZ) and Vodafone Group Plc (NASDAQ: VOD) are about to get a nice inflow into the corporate coffers. Verizon Wireless has declared distributions in the sum of a total of $8.5 billion to its owners. These two payouts are payable on or before December 31, 2012. As a reminder, Verizon Wireless owns 55% of the partnership and Vodafone Group Plc owns 45% of the partnership. The company said that these distributions will be paid out in one or more tranches, with each tranche paid in proportion to the owners' partnership interests on the payment date.
It is important to realize that this is a partnership payout to the parent companies rather than a direct payout to holders of Verizon Communications and holders of Vodafone.
Vodafone ADRs and Verizon shares have each correct off of highs. Vodafone ADRs are now at $26.39 versus a 52-week range of $25.63 to $30.07; Verizon shares are currently at $42.56 versus a 52-week trading range of $35.32 to $48.77.
JON C. OGG
Filed under: 24/7 Wall St. Wire, Dividends & Buybacks, Telecom & Wireless Tagged: featured, VOD, VZ