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. 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
the 61-day period opening on June 10 and closing on August
9 in 2005, 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 2006 and 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.
Preferred Securities Issued By Subsidiaries
On December 7, 2005, Verizon issued a notice to redeem $100
million Verizon International Holdings Ltd. Series A variable
term voting cumulative preferred stock on January 15, 2006
at the redemption price per share of $100,000, plus accrued
and unpaid dividends. |
