Verizon Communications Inc. (VZ), Vodafone Group Plc (ADR) (VOD): Making Money on Consolidation Events

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Bottom line

If we take into account the low interest rates and strong financial position of Verizon Communications Inc. (NYSE:VZ), this is the ideal time for the company to make an attempt for full control of Verizon Wireless. Only time will tell if Vodafone Group Plc (ADR) (NASDAQ:VOD) is ready for a friendly deal or if Verizon will have to go public. Verizon is currently trading at a forward P/E of 16.8x and near its mean sell side target price of $51. Any progress on the Verizon Wireless deal will result in a significant rally on shares of both Vodafone Group Plc (ADR) (NASDAQ:VOD) and Verizon, offering investors a window for short term gains. Investors can also cash in on the Sprint acquisition bid because if any competing bid comes in from Softbank the shares of Sprint will witness a significant rally.

The article Making Money on Consolidation Events originally appeared on Fool.com.

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