VOD-Vodafone,sell or wait..?

planteria

i think it will be interesting times for Vodafone. well-placed to expand, potentially by acquisition, in growth markets. but also potentially a takeover target for AT&T. if that were to happen i would probably move into another FTSE100 company with a good yield.

sabretoothtigger

In the long term I think taking profits on Verizon is a good idea. USA is not an ascending country and Vodafone should do better elsewhere in theory. Or at least, the fastest growth there is done already.

Apple just signed up to China mobile, thats the next freight train to riches


I only have VOD via a ftse tracker so is just my idle opinion. When they sell, VOD will become alot smaller section of the FTSE every day and the overall yield may even drop because of that

planteria

letter received from HL today.
as my shares are held within my ISA they are automatically distributing the payment as Capital.

gld73

I hold my shares through HSBC InvestDirect - the options I'm given are:

1) to upgrade the account to an InvestDirect Plus account in order to hold US-listed shares (which I don't want to do, as I only have a small holding of VOD shares, so the small number of Verizon Comms shares I'd get wouldn't make moving to the Plus account worthwhile)

2) Transfer to another broker (I hold all my shares with HSBC, so don't want to transfer one small lot to another broker)

or the default option, which is they'll try and transfer the US-listed shares into my name directly rather than holding them through the HSBC account.

None of those options appeal - I just want to keep hold of my VOD shares in the UK, and automatically sell the Verizon Comms ones immediately and just get the little proceeds from those as cash. Disappointing that that's not an option :-(

planteria

i agree. i'm surprised that the deal is working as it is. there must be a lot of new VC shareholders about to appear who don't actually want to be. and many holdings are going to be too small to be practical. but, presumably, Verizon wanted it that way...to increase their shareholder base:think:

C_Mababejive

I guess the decision is linked to how you hold your VOD and what volume you have.

A friend has a fairly small holding in paper certs form. I would think the obvious answer would be to sell the VZ and keep the vod in that case and treat the outcome as capital.

Meanwhile someone else who has a larger amount via a nominee account might consider keeping VOD and VZ but ensuring they have a W8 BEN in place and just carrying on holding the two companies..

C_Mababejive

Here is a useful article..

http://www.ft.com/cms/s/0/eb47e162-6264-11e3-bba5-00144feabdc0.html#axzz2qD4HReud

Buy the way,,is the total return of around £1.05 per share all treated as Capital Gain for tax purposes?

i.e the CGT allowance for 2013-14 is £10,900 so if the return is more than this then whatever amount exceeds this will be subject to CGT ??

planteria

can't read the link without an FT.com account

C_Mababejive

planteria wrote: »

can't read the link without an FT.com account

Yes..noted..i managed to view it once without it being blanked...arrghh..

westy22

You can get at it by Googling 'Financial Times Vodafone' and selecting the right article.