Verizon may try to merge with Sprint
Published 9:00 pm Tuesday, December 14, 2004
NEW YORK – 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, the third-biggest U.S. long-distance phone firm.
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.
A spokesmen for Verizon had no comment on the report. But Vodafone spokesman Ben Padovan said, “We are not in discussions with Verizon” and declined to comment further.
Verizon would consider a deal with Sprint as a way to fight cable firms, which are entering the telecom business, Greg Gorbatenko, an analyst with Marquis Investment Research, wrote in a research note. The cable companies can sell Internet connections and home phone service, but they need a wireless “reseller” partner to offer a complete telecom package.
