Verizon Communications Inc. (VZ) (0.7%) (VZ - $48.93 - NYSE) is one of the world’s leading telecommunications services companies. On February 21, 2014, VZ completed the acquisition of Vodafone’s (0.2%) 45% indirect interest in Verizon Wireless, which was valued at approximately $130 billion. The deal is expected to be immediately accretive to Verizon’s earnings per share by approximately 10%, excluding any non-operating adjustments. Verizon Wireless (VZW) is the largest mobile operator in the U.S. with 103 million retail customers. Verizon expects this transaction to enhance value across platforms and allow the company to operate more efficiently, with continued focus on producing more seamless and integrated products/solutions for its customers. Management believes that full ownership of Verizon Wireless will provide increased opportunities in the enterprise and consumer wireline markets. In April 2014, VZ reported stronger than expected first quarter of 2014 consolidated revenues and EBITDA (driven by wireless outperformance) and reiterated its guidance for top line growth of 4% and adjusted consolidated EBITDA margin expansion in 2014.
From Mario Gabelli (Trades, Portfolio)’s The Gabelli Equity Income Fund Second Quarter 2014 Shareholder Commentary.
