LONDON | Mon September 12, 2011 12:47 EST
London (Reuters)-Verizon Communications (VZ.N) has dashed the hopes of Vodafone (VOD.L) investors, excluding a return to a recurring dividend mobile phone joint venture the two companies, called Verizon Wireless, the Financial Times reported on Monday.
In an interview with the newspaper on Monday, Lowell McAdam, new CEO of Verizon Communications, said that it was not possible to have an annual dividend payment policy for Verizon Wireless, because the leading mobile operator in the U.S. may need to buy rival companies or purchase spectrum.
McAdam said that Verizon Communications, the American telecommunications company and Vodafone, the mobile group of the United Kingdom, were working closely together on several other projects not specified.
He also told the FT that it would be wrong to exclude the possibility of Verizon Communications and Vodafone merger in the future, although he suggested that it would not happen in the short and medium term.
Reuters does not immediately reach Verizon Communications or Vodafone to comment.
(Reporting by Stephen Mangan; Editing by Muralikumar Anantharaman)
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