Vodafone in talks to sell stake in Verizon Wireless

lvader

A_Flock_Of_Sheep wrote: »

as new shareholders today, tomorrow, next week can't benefit from the windfall surely????

Sure they will, why noy?

steady__eddie

Presumably there will be a "record date" for beneficiaries akin to windfalls associated with the mutual sector ? Members who had a balance £100 on a date prior to the announcement of the merger/takeover date. (Readers of this will require a good memory to remember this one).

A_Flock_Of_Sheep

steady__eddie wrote: »

Presumably there will be a "record date" for beneficiaries akin to windfalls associated with the mutual sector ? Members who had a balance £100 on a date prior to the announcement of the merger/takeover date. (Readers of this will require a good memory to remember this one).

This is what I was thinking?? Surely to benefit from this "deal" you would need to have been a shareholder at least on the day before yesterday's announcement? That would be a bit odd if they announce this and the world and his wife could then jump aboard and benefit??

Mind you if that is the case then yes I am tempted. The new Dividend rise is a big temptation to me anyway - I assume that will be for any new shareholders too.

lvader

The deal hasn't even been completed yet and won't be for some time. In the meantime share trading in both companies continues as normal.

A_Flock_Of_Sheep

lvader wrote: »

The deal hasn't even been completed yet and won't be for some time. In the meantime share trading in both companies continues as normal.

I have just been looking in more detail. Yes you are correct. A shareholder circular is being issues December and shareholders must vote on whether this goes ahead. They are recommended to say yes.

So basically it appears you may be right - one can buy VOD tomorrow and attain voting rights to this proposal and then if it goes through one would benefit from the B shares etc etc. Plus the uplifted Dividend that is set to rise.

Sounds a bit too good to be true???

lvader

A_Flock_Of_Sheep wrote: »

Sounds a bit too good to be true???

Once everything goes through VOD's market value will most likely more than half. The other issue is that disposing of VZ shares might be difficult and costly for a small holding. Howver my strategy is to hold both company shares and bank the divis. I'm expecting at least 20% profit even at todays share price with minimal risk.

A_Flock_Of_Sheep

lvader wrote: »

Once everything goes through VOD's market value will most likely more than half. The other issue is that disposing of VZ shares might be difficult and costly for a small holding. Howver my strategy is to hold both company shares and bank the divis. I'm expecting at least 20% profit even at todays share price with minimal risk.

Yes there is a whole section on this on the Vodafone website. It mentions the share price will fall as a result but the deal will compensate for this - I am not sure at this stage how this works. They mention B shares.

If I invest in VOD it will certainly be for the long term and to hold. The new uplifted dividend being attractive to me as an income seeker.

I simply assumed this was a bit like the windfalls from the Building Societies where you needed to hold an account on a certain date and even have a certain balance.... seems this is different.

planteria

it is certainly different. Vodafone shares are bought & sold. holders of the shares are not members, they just hold shares in a plc company.

sabretoothtigger

Ivader is saying voda and verizon are both good value at this price.

The reason you cant just jump in after the fact is the price change, you missed that benefit because we now know. If theres a bit of market crash it could go all the way back though because this split was always possible it was just people didnt want to wait for the payout

A_Flock_Of_Sheep

Ivader is your tactic to buy now, take advantage of the windfall benefit and then as you say the share price will drop providing another buying opportunity? So you could get a windfall, Verizon shares plus more Vodafone shares cheaper?