Vodafone shares open 1.2 percent down after Verizon deal agreed

Tue Sep 3, 2013 3:14am EDT
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LONDON (Reuters) - Shares in Vodafone (VOD.L: Quote) opened 1.2 percent down on Tuesday after Verizon Communications (VZ.N: Quote) agreed to pay $130 billion to buy the British company out of its U.S. wireless business, Verizon Wireless.

Vodafone shares fell to 209.5 pence, valuing the company at around 101 billion pounds ($157.20 billion). Vodafone shares had risen to their highest level since April 2001 on Monday.

Verizon Communications agreed on Monday to buy Vodafone out of Verizon Wireless in a cash and shares agreement - history's third largest corporate deal.

For the British group, the accord will allow it to return 71 percent of the net proceeds, or $84 billion including all of the stock, to shareholders while also ramping up investment in its networks to set itself apart from rivals.

(Reporting by Rhys Jones; editing by James Davey)

A woman talks on her mobile phone as she walks past a Vodafone store in London September 2, 2013. REUTERS/Stefan Wermuth