Vodafone’s latest deal fuels further earnings growth and dividend support
Vodafone's proposed takeover of Cable & Wireless Worldwide for 38 pence per share in cash - valuing the company at roughly £1bn -represents excellent value for Vodafone’s shareholders.
Once completed, and when properly absorbed, the deal could transform Vodafone into a major integrated telecoms business in the U.K., offering for the first time fixed and wireless communications and moving it from fourth to second place, only behind BT. In addition, it will double its corporate business in the U.K., while substantial disposal(s) of some of C&WW’s undersea cable networks as well as tax rebates may make this deal an absolute steal.
In the next few years, the deal is likely to yield substantial operating cost benefits in the U.K., with not only subsequent enhanced earnings potential, but also putting dividend growth prospects on a firmer footing going forward.
For more: http://seekingalpha.com/article/527081-vodafone-s-latest-deal-fuels-further-earnings-growth-dividend-support
Steven Dotsch - Managing editor - http://www.dividend-income-investor.com - Guide to Dividend Investing, at: http://www.dividend-income-investor.com/guide-to-dividend-investing/ - Dividend Value Profiles, at: http://www.dividend-income-investor.com/british-american-tobacco/