Verizon says in "no rush" for wireless IPO
--Keith, I don't think the VZ Wireless news below was yet posted, though you referred to it..--
SCOTTSDALE, Ariz., Jan 9 (Reuters) - Local telephone company Verizon Communications <VZ.N> said it is in "no rush" to proceed with an initial public offering of its Verizon Wireless joint venture, citing weakness in wireless stocks and the collapse of a deal to buy wireless licenses.
"The reasons behind why we wanted to do the IPO changed," Verizon co-Chief Executive Officer Ivan Seidenberg said at Salomon Smith Barney 12th Annual Entertainment, Media and Telecommunications Conference in Scottsdale, Arizona.
Verizon and other telephone companies bid $15.85 billion for wireless licenses almost a year ago, but that sale was thrown into chaos. A federal appeals court said the Federal Communications Commission (FCC) could not repossess and reauction the airwaves from NextWave Telecom Inc. <NXLC.PK> when that company failed to make timely payments. A deal to distribute the NextWave licenses collapsed when Congress failed to pass authorizing legislation by Dec. 31.
Due to the collapse of the NextWave deal, Verizon Wireless does not "have the pressure to raise money," Seidenberg said. Also, the current weakness in the valuation of wireless telephone stocks may make an IPO ill-timed at the moment.
"Long-term, we believe a separate equity is reasonable for that business. But in light of Nextwave and current valuations, we're in no rush to move forward," Seidenberg told investors at the conference.
16:23 01-09-02 |
