Verizon Wireless has agreed to pay its co-owners Verizon Communications and Vodafone a dividend of about $7bn on 25 June 2013, resolving what was a source of tension between the two firms.
Verizon Communications, which owns 55% of the business, will get $3.85bn, while Vodafone, owning the remaining stake, will receive $3.15bn.
The dividend comes amidst rising speculation that the US-based mobile service provider could acquire Vodafone’s stake in the venture if they could agree on a price.
Earlier, Verizon Communications had reportedly appointed advisers to plan a possible $100bn bid for Vodafone’s stake in Verizon Wireless.
A report claimed that Verizon was ready to push aggressively for a deal and is confident that the firm can raise about $50bn of bank financing.
Verizon had previously declined to approve a dividend from the Wireless asset between 2005 and 2011 as it preferred to pay down debt and make acquisitions.
