April 02, 2013 at 11:09 AM EDT
Verizon and AT&T Closer to Joining Forces to Acquire Vodafone (VOD, VZ, T)

Rumors were circulating on Tuesday that Vodafone (VOD) may be close to being acquired by Verizon Communications (VZ) and AT&T Inc. (T).

According to the London-based Financial Times, Verizon and AT&T might make a joint bid for Vodafone, worth about $245 billion. In the deal Verizon would acquire Vodafone’s US operations, while AT&T would purchase the non-US assets.

Such a deal would help reduce risk for both corporations and aid in passing regulatory scrutiny.

Vodafone and Verizon have been in talks about a possibly acquisition or merger since late 2012. Verizon Communications has been seeking to buyout Vodafone’s stake in their joint-venture of Verizon Wireless. However, various hurdles had stalled talks.

In March, analysts at Bank of America Merrill Lynch suggested that Verizon’s desire to acquire Vodafone’s stake in Verizon Wireless could be helped by AT&T. AT&T has been looking for opportunities to expand its global market reach; such a deal would aid toward that goal.

Vodafone shares were up $1.09, or +3.85%, during Tuesday morning trading. Verizon shares were up 45 cents, or +0.91%. AT&T shares were up 28 cents, or +0.75%.

The Bottom Line

  • Shares of Vodafone (VOD) have a dividend yield of 3.47% based on Tuesday’s intraday trading price of $29.39 and the company’s annualized dividend payout of $1.02 per share.
  • Shares of Verizon (VZ) have a dividend yield of 4.15% based on Tuesday’s intraday trading price of $49.65 and the company’s annualized dividend payout of $2.06 per share.
  • Shares of AT&T (T) have a dividend yield of 4.80% based on Tuesday’s intraday trading price of $37.48 and the company’s annualized dividend payout of $1.80 per share.
  • Vodafone (VOD) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Verizon (VZ)is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. AT&T (T) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

    Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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