Vodafone Group Plc (ADR) (VOD) Wants Growth of More Than $100 Billion

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Bottom line

Although Vodafone is unlikely to sell its 45% stake in Verizon Wireless while its other assets in Europe continue to underperform, the $100 billion offer presents a great short-term deal for Vodafone Group Plc (NASDAQ:VOD) whose company cap is currently around $148 billion. Strategically, however, it is in Vodafone’s best interest to use the strong free cash flow from Verizon Wireless to fund its growth until European market recovers and newer market matures. As for the company’s investors, owning Vodafone is a safe investment choice as it has options to sell Verizon Wireless for a large premium or to expand continuously using Verizon’s cash flow.

Nick Chiu has no position in any stocks mentioned. The Motley Fool recommends Vodafone.

The article Vodafone Wants Growth of More than $100 Billion originally appeared on Fool.com.

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