Yamaguchi Partners: Verizon Announces US$8.5B Dividend.

Online, December 1, 2012 (Newswire.com) - Yamaguchi Partners allegedly told investors at a meeting that the largest mobile operator in the United States, by subscriber numbers, Verizon Wireless, is jointly owned by British mobile communications giant Vodafone Group and Verizon Communications through a joint venture. A spokesperson confirmed in a recent announcement that a dividend would be paid before the end of the year.

Verizon paid a $10 billion dividend last year, its first since 2005, deciding instead to use its profits to pay down debt. Corporate dividends will be subject to a tax rise in 2013, due to the expiration of Bush era tax cuts, meaning this dividend will be subject to taxes at the lower rate.

Yamaguchi Partners reportedly predicted a dividend announcement of $8.8 billion on average and had expected it to be paid out before the end of this year. Verizon Communications owns 55 percent of Verizon Wireless, with Vodafone owning the remaining 45 percent.

The US number-one's revenue in the third quarter of 2012 was US$19 billion, up 7.3 percent year-on-year. It also added 1.8 million connections during the period, taking its total number of retail customers to 96 million.

Verizon Wireless operates the largest 4G LTE network in the US, the rollout of which is ahead of schedule, and will cover 417 markets by the end of the year.

The $3.825 billion that Vodafone will receive has prompted speculation regarding potential takeover targets for Vodafone. Yamaguchi Partners seem to believe Vivendi, owners of SFR of France and Spanish telecoms company Yoigo may have been highlighted as potential targets.

A representative of Vodafone however stated in a public statement that although no final decision has been made as of yet, a special dividend to Vodafone shareholders will be the most likely outcome for the majority of the Verizon cash payout.