BizNomic

Verizon Communications Inc. Chief Executive Ivan Seidenberg said he does not see much reason to strike a deal with Vodafone Group PLC.

There has often been speculation on the future of their joint venture, Verizon Wireless. Mr. Seidenberg, speaking during a conference hosted by the Council on Foreign Relations on Tuesday, said he would eventually like to resolve the joint venture structure. He has often said he would like to buy out Vodafone’s stake in Verizon Wireless, but didn’t provide a timetable.

Verizon owns a controlling stake in the carrier ie. Verizon owns 55 percent of Verizon Wireless and Vodafone owns the remaining 45 percent. Mr. Seidenberg has however, dismissed all rumours of a larger alliance, or a merger. “There’s no compelling reason that this is an exciting thing to do,” he said during a conference hosted by the Council on Foreign Relations. Though he also added the proverbial never-say-never-clause, by saying that his opinion on a merger wasn’t the final position and that things may change.

The model of a global wireless company, which is what Vodafone is, isn’t the preferred one, he said. At some point, that model would lose economies of scale, he added, noting that a combined company would have a difficult time finding enough growth to justify the merger.

In comments on the proposed National Broadband Plan, Mr. Seidenberg said he is concerned the plan could lead to an “overreach” of regulation that could cut into private investment.

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