Vodafone windfall

ericonabike

A lot of column inches in today's papers about Vodafone shareholders getting a windfall from the sale of a subsidiary firm [Verizon]. Anyone know if this is for those who owned shares on a particular date, or is it likely that anyone investing now would also be eligible?

CLAPTON

ericonabike wrote: »

A lot of column inches in today's papers about Vodafone shareholders getting a windfall from the sale of a subsidiary firm [Verizon]. Anyone know if this is for those who owned shares on a particular date, or is it likely that anyone investing now would also be eligible?

if it's in the newspapers then it's already in the price (and has been for the last year)

le_loup

Unfortunately free money has not yet been invented. Shame.

ericonabike

Free money - came close to it in the RM sell-off. But I take the point.

donemedosh

ericonabike. Sorry but you must already hold the shares in Vodafone. I think you had to have shares when the company announced it was selling it's stake in Verizon which was late last year.

DaveTheMus

It's not a 'windfall', it's a forced return of capital......I sold my holding 3 months ago with a 35% profit........Verizon was the best thing about Vodafone, now that's gone expect the value to sink

Biggles

donemedosh wrote: »

ericonabike. Sorry but you must already hold the shares in Vodafone.

No, it is anticipated that you must hold the shares at 6pm on 20 Feb.

bowlhead99

donemedosh wrote: »

ericonabike. Sorry but you must already hold the shares in Vodafone.

This is incorrect. You can buy shares for another three weeks before they start trading ex-rights.

I think you had to have shares when the company announced it was selling it's stake in Verizon which was late last year.

That is also hogwash.

Last September they announced the sale transaction. Hundreds of millions of shares have changed hands since, it is business as usual.

Yesterday the shareholders' votes on the transaction and the distribution were counted. You didn't need to have shares last September to vote, you could have bought them last week and you would still get your say.

In about 3 weeks they will look at the share register again and see who is on it, and those people will get their cash and Verizon shares and be able to elect their method of distribution. People buying in after that key date will be buying new shares without the rights rather than old shares with the rights, and will pay less for the shares. Before the relevant date, last week, next week, the week after etc, you can buy shares and get yourself onto the register before they look at it and decide who to pay. Or you can sell and get off the register and not receive the distribution but receive more money for your shares because you are selling them with rights to receive a hefty distribution.

I am all for "being nice to newbies", but there is not a lot of point joining a thread to answer someone's specific question if you don't know what the answer is

planteria

you are right bowlhead.

DaveTheMus wrote: »

It's not a 'windfall', it's a forced return of capital......I sold my holding 3 months ago with a 35% profit........Verizon was the best thing about Vodafone, now that's gone expect the value to sink

is interesting. i do wonder about the future prospects for Vodafone. it's all about how they will use the cash...there are some great markets that they already have a good base in. how well they can generate cash in Egypt, Ghana, Qatar, Turkey etc. will be interesting.

for now, i am holding.

Scarpacci

planteria wrote: »

is interesting. i do wonder about the future prospects for Vodafone. it's all about how they will use the cash...there are some great markets that they already have a good base in. how well they can generate cash in Egypt, Ghana, Qatar, Turkey etc. will be interesting.

for now, i am holding.

I agree. I am holding VOD primarily for the same emerging market exposure you mention. They're well positioned for growth abroad, but of course success there isn't guaranteed. Their Verizon Wireless ownership only started paying dividends a few years back (2009?) and the U.S. market is quite mature. Vodafone seem to have got a good price for it, so I don't see much concern in VZW being sold.

Vodafone's European operations aren't having the best of times at the moment, but things may get better if they keep selectively buying other Euro cable groups and perhaps begin working with Sky. If AT&T (or SoftBank for that matter) are genuinely interested in getting into the EU market, whether a bid for VOD happens or not, it perhaps shows there's still potential for the EU market, too.

planteria

agreed all round.
view seems to be that the deal is right for both companies. Verizon certainly want full control. and Vodafone get a 'good' price and are able to focus more on markets with potential for growth. and yes, Europe could be a very important part of that, accepting that some of the other non-European economies are growing faster, there could be potential to really grow revenues in the Eurozone.