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Verizon Stiffs Vodafone

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By Douglas A. McIntyre Published
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Vodafone (VOD) had some shareholders who wanted the company to sell part of its stake in Verizon Wireless back to majority owner Verizon (VZ). VOD management made the argument that the wireless operation was too valuable to sell now. And, there was the chance of a fat dividend in 2009. A nice little benefit for VOD’s balance sheet.

Well, according to the FT, that won’t happen. It now looks like the first payment will be 2010. As the paper writes "The likely slippage to 2010 or later could fuel tension". VZ would rather use cash to pay down the wireless JV’s debt. But, VOD said “We remain of the view that dividend payments will resume in calendar year 2009."

It looks like Vodafone will have a couple of unhappy years.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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