How Will Verizon Settle Its Relationship With Vodafone?

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verizonVerizon Communications Inc. (NYSE:VZ) is reportedly working on its troubled relationship with Vodafone (NASDAQ:VOD), the company’s European counterpart.

In what capacity though, is under speculation. Rumors abound that the company could cut off ties altogether, or issue a full merger — and everything in between, people familiar with the situation told Bloomberg.

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Conversations about merging have happened as recently as December, the sources said. However, disagreements about leadership, and possible locations for the headquarters lead speculators the think that a buyout or partial sale of Vodafone’s 45 percent, $115 billion stake in Verizon would be more likely.

Verizon has expressed interest in gaining more control over its most profitable division, and is enthusiastic about a buyout. Vodafone, though, has some reservations about valuation, and how to use any proceeds from a sale. The U.K. company has explored the idea of using the money to make acquisitions in Europe, instead of just returning proceeds to shareholders.

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