Verizon Wireless CEO Dismisses Vodafone Merger Rumours

The Chief Executive Officer of Verizon Communications, Ivan Seidenberg, has dismissed speculation that hinted at a Verizon-Vodafone merger, explaining that there is no feasible reason for the two companies to merge.

Verizon Communication, which is headquartered at New York City, USA, apart from being one of the largest broadband and wireless service provider in the country, jointly runs Verizon Wireless with UK's Vodafone.

Expressing his views on the matter, Ivan Seidenberg, said in a statement that “There's no compelling reason for investors to think this is an exciting thing to do. In the long term... minority-interest partners in your business, you'd probably like to resolve that.” The Verizon headhoncho added that due to the fact that Vodafone does not offer fixed line services, a merger is not possible as the required strategic synergies may not exist.

Vodafone, which has a 45 percent stake in Verizon Wireless, has been trying to get Verizon Wireless to restart the dividend payment program, which has been halted by Verizon since 2005, in order to get rid of the debt acquired by Verizon Wireless over the period of recession. Industry analysts expect Verizon to start paying dividends at the end of 2011.