Warren Buffett’s Berkshire Hathaway Inc. disclosed a holding in Verizon Communications Inc. in a wager that the telecommunications company will benefit after buying out its partner in the largest U.S. wireless business. Verizon posted the biggest increase in the Dow Jones Industrial Average.
Verizon Communications Inc. set the stage for the $130 billion buyout of Vodafone Group Plc’s stake in their U.S. venture two years ago, when it named a new chief executive officer: Lowell McAdam, a 20-year veteran of the wireless industry with long-standing ties to Europe.
Six months after Verizon Communications Inc. announced the purchase of full control of its wireless business, a price war and stock decline are forcing executives to convince shareholders of the deal’s merits all over again.
BCE Inc., Rogers Communications Inc. and Telus Corp., Canada’s three biggest wireless carriers, all tumbled in Toronto trading on concern that Verizon Communications Inc. is poised to enter the market.
Vodafone Group Plc is poised to exit the best investment it ever made, pocketing as much as $130 billion from the 45 percent it owns in U.S. mobile company Verizon Wireless and focusing its attention on Europe.