Anthony Hilton: Vodafone shareholders are in for their very own QE
Saturday 22 February 2014
One of the biggest financial transactions between a British and an American company closed yesterday with the completion of the deal in which Vodafone is to sell its 49 per cent stake in one of the leading US mobile phone operators to Verizon, its partner in the venture. Vodafone shareholders will receive a shares and cash package worth some £50bn.
To put this in context, it is more than the Government spent to rescue Royal Bank of Scotland, and on a par with the tranches of stimulus to the economy delivered by the Bank of England. In effect Vodafone shareholders are getting their own private tranche of quantitative easing.
The question is what do they do with the money? Bulls of the stock market are rubbing their hands at the potential impact on share prices across the board when that money finds its way into the markets, and that may be what happens. There are also a lot of new issues coming to market.
But there is also a powerful case for investors simply doubling up their bet on Vodafone. It is a company which will either attract a bid itself from AT&T or more likely continue to plough a successful furrow as one of the leading mobile operators – at a time when mobile connectivity is becoming the ever more dominant technology.
It is also, with Vittorio Colao, being run by one of Europe’s great business leaders. Some fund managers say you should only invest in a business which could be run by an idiot because one day it will be. But that surely should not stop us enjoying the fact that at the moment Vodafone is run by a man who thinks about what kind of business its customers would like it to be, and who is willing to sell when prices are high rather than be tempted to make costly acquisitions.
Diving in at the deep end is no excuse for shirking the style stakes
- 2 Why I'm on the brink of burning my Israeli passport
- 4 War is war: Why I stand with Israel
- 5 Blackest is the new black: Scientists have developed a material so dark that you can't see it...
Ian Thorpe gay: Olympic swimmer comes out in Parkinson interview
Stephen Fry ‘criticises Operation Yewtree in dinner party rant’ calling for tougher laws to deter false sex abuse allegations
Israel-Gaza conflict: ‘Sderot cinema’ image shows Israelis with popcorn and chairs 'cheering as missiles strike Palestinian targets'
Israel-Gaza conflict: Israeli air strike destroys home for the disabled killing two women residents
Israel-Gaza conflict: Israeli PM says conflict may 'continue for a long time' as hundreds of Palestinians flee their homes
Sustained immigration has not harmed Britons' employment, say government advisers
War is war: Why I stand with Israel
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Australia facing international condemnation after turning around Sri Lankans at sea
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
iJobs Money & Business
£70000 per annum: Harrington Starr: Information Security Manager (ISO 27001, A...
£75000 - £85000 per annum + ex bens: Deerfoot IT Resources Limited: Biztalk Te...
£60000 per annum: Harrington Starr: Trade Desk Specialist (FIX, Linux, Windows...
£35000 per annum: Harrington Starr: Service Desk Analyst (Windows, Active Dire...