Report: Verizon Gets Backing on Sprint Bid
Tuesday December 14, 9:40 am ET
Verizon Receives Backing From Partner Vodafone for Potential Bid for Sprint, Report Says
NEW YORK (AP) -- Verizon Communications Inc., the nation's biggest phone company, has reportedly won the support of its wireless partner, Vodafone Group PLC, should it decide to make a bid for Sprint Corp., the third-biggest U.S. long-distance phone company.
The Wall Street Journal cited unidentified people familiar with the situation for its report on Verizon's moves, which come even as Sprint is reportedly near a $35 billion deal to merge with the smaller wireless company Nextel Communications Inc.
Spokesmen for both Verizon and Vodafone had no comment on the report.
Sprint, based in Overland Park, Kan., and Nextel, based in Reston, Va., have declined comment on their talks. A combination would create a wireless company that would trail only the cellphone industry Verizon Wireless and Cingular Wireless.
The Journal said Sprint's board met Monday and was expected to continue meeting Tuesday to discuss the proposed Nextel merger and that the Nextel board is also considering the possible deal. It said a deal could be announced Wednesday.
The newspaper said Verizon Communications officials have been meeting to discuss a possible takeover of Sprint in recent days and have studied such a deal for 18 months. But it said it remains unclear whether Verizon will make such a bid.
A successful bid by Verizon would make Verizon Wireless, the nation's second-largest wireless operator, the largest in the industry by far, with more than 65 million customers. Just seven weeks ago, Cingular Wireless passed Verizon for the top spot by completing its acquisition of AT&T Wireless Services, giving Cingular roughly 47 million subscribers.
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