Verizon plunders Vodafone to fund MCI purchase

11 May 2005

Verizon Communications says it will take advantage of a US tax break to extract EUR1.82 billion from its 23% stake in Vodafone Italy to help fund its purchase of MCI. Under US law, domestic companies have a one-year period in which they can repatriate profits earned abroad at a heavily reduced tax rate of 5.25%, rather than the usual corporate rate of 35%. The transactions will be funded by available cash at Vodafone Italy and will take place in June and October.

Italy, United States, Verizon Communications, Vodafone Group, Vodafone Italy