Wireless
Joint Venture
The wireless joint venture was formed in April 2000
in connection with the combination of the U.S. wireless
operations and interests of Verizon and Vodafone Group
Plc (Vodafone). The wireless joint venture operates
as Verizon Wireless. Verizon owns a controlling 55%
interest in Verizon Wireless and Vodafone owns the remaining
45%.
Under the terms of an investment agreement, Vodafone
may require Verizon Wireless to purchase up to an aggregate
of $20 billion worth of Vodafone’s interest in Verizon
Wireless at designated times at its then fair market
value. In the event Vodafone exercises its put rights,
we have the right, exercisable at our sole discretion,
to purchase up to $12.5 billion of Vodafone’s interest
instead of Verizon Wireless for cash or Verizon stock
at our option. Vodafone had the right to require the
purchase of up to $10 billion during a 61-day period
opening on June 10 and closing on August 9 in 2004,
and did not exercise that right. As a result, Vodafone
still has the right to require the purchase of up to
$20 billion worth of its interest, not to exceed $10
billion in any one year, during a 61-day period opening
on June 10 and closing on August 9 in 2005 through 2007.
Vodafone also may require that Verizon Wireless pay
for up to $7.5 billion of the required repurchase through
the assumption or incurrence of debt.
Cellular Partnerships and Other
In August 2002, Verizon Wireless and Price Communications
Corp. (Price) combined Price’s wireless business with
a portion of Verizon Wireless in a transaction valued
at approximately $1.7 billion, including $550 million
of net debt. The resulting limited partnership is controlled
and managed by Verizon Wireless. In exchange for its
contributed assets, Price received a limited partnership
interest in the new partnership which is exchangeable
into common stock of Verizon Wireless if an initial
public offering of that stock occurs, or into the common
stock of Verizon on the fourth anniversary of the asset
contribution date if the initial public offering of
Verizon Wireless common stock does not occur prior to
then. The price of the Verizon common stock used in
determining the number of Verizon common shares received
in an exchange is also subject to a maximum and minimum
amount.
TELPRI
Telecomunicaciones de Puerto Rico, Inc. (TELPRI) provides
local, wireless, long distance, paging and Internet-access
services in Puerto Rico. |
