Verizon Wireless Stashing Cash for Acquisitions

No matter what happens with the AT&T bid to buy T-Mobile USA, Verizon Wireless is storing up cash that might be needed to make acquisitions or other investments. Verizon Wireless is slated to make a $10 billion one-time payout to the two owners, but Vodafone wants a regular annual payment, too. Verizon Wireless says it can't do so.

Verizon CEO Lowell McAdam, told the Financial Times of London that an annual dividend was unrealistic because “we may end up buying spectrum, and we may end up buying another company.” Verizon gets ready for more acquisitions

Verizon would have one set of options if the AT&T deal fails, other sets of options should it succeed. If the AT&T deal is rebuffed, Verizon Wireless likely would conclude that it cannot make a similar big deal of its own. If the AT&T deal succeeds, Verizon would be free to consider an acquisition of Sprint or other spectrum assets.