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London - Vodafone Group said on Thursday it was in talks with Verizon Communications Inc to sell its 45% stake in their U.S. joint venture Verizon Wireless for what a Bloomberg report said would be about $130bn.
Verizon is working with several banks to raise $10bn from each to finance about $60bn of the deal and an announcement could come as soon as September 2, two sources told Bloomberg.
Reuters reported first in April that Verizon had hired advisers for a possible $100bn bid and was contemplating a roughly 50:50 cash and stock offer for the 45% stake in Verizon Wireless it does not already own.
At the time, most analysts said the roughly $100bn figure contemplated by Verizon was too low and that the value of the Vodafone holding was nearer $120bn.
The Wall Street Journal said significant shifts in financial markets, such as rising interest rates as well as changes in the US cellphone business had brought the two sides closer together.
A Verizon spokesperson declined to comment on the Bloomberg and Wall Street Journal reports.
Vodafone Chairperson Gerard Kleisterlee said last month the company would seriously consider any offer for its stake in Verizon Wireless if it offered more value to investors than the current status quo.
