15:00 03 September 2013
In one of the biggest deals in corporate history, Vodafone has sold its 45per cent stake in Verizon Wireless to US telecoms group Verizon Communications for £84billion. The deal was announced by Vodafone after London Stock Exchange have closed. It was confirmed that the company will return £54billion to its shareholders.
Vodafone chief executive Vittorio Colao told BBC News: "We got an offer that we thought was in the interests of our shareholders to accept - at the end of the day it's as simple as that."
The company is said to invest £6bn to accelerate the introduction of 4G networks to provide coverage to its main five European markets by 2017.
Aside from the size of the deal, the transaction is considered controversial as UK will not be paid tax. Mr Colao explained: "Everybody is entitled to his or her opinion... but we don't deal with opinions, we deal with rules, and with standard rules and practices and tax practices from any jurisdiction where we operate.”
"This jurisdiction is the Dutch one but even the UK one has very similar rules - we apply the rules."
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