Delta Air Lines, Inc. (DAL), Vodafone Group Plc (ADR) (VOD): UK Tour

It’s because Verizon Communications Inc. (NYSE:VZ) is considering a bid for Vodafone’s 45 percent stake in the Verizon Wireless joint venture. A report surfaced that Verizon Communications Inc. (NYSE:VZ) was preparing to offer a bid of US$100 billion for the stake. But many Vodafone Group Plc (ADR) (NASDAQ:VOD) investors do not consider this bid, which would require a great deal of capital raising on Verizon Communications Inc. (NYSE:VZ)’s part, to be a fair valuation of JV stake.

Vodafone Group Plc (ADR) (NASDAQ:VOD) investors want a bid above US$120 billion before they will consider the potential offer further. But some investors want to create an even bigger deal that would involve merging Verizon Communications Inc. (NYSE:VZ) with Vodafone. This potential mega merger is still mere market speculation but it is worth keeping an eye on for both Verizon Communications Inc. (NYSE:VZ) and Vodafone Group Plc (ADR) (NASDAQ:VOD) investors.

Those interested in holding Vodafone Group Plc (ADR) (NASDAQ:VOD) shares could collect the company’s dividend of nearly 5 percent. With negative earnings, the dividend is unlikely to see any increases in the near future and could even come under threat if the company’s fortunes turn south. Verizon Communications Inc. (NYSE:VZ)’s dividend is nearly 4 percent meaning a merger between the two companies would not pose a significant threat to the dividend and may even provide stability to it due to the increased size of the company.

Two big companies

With market capitalizations of US$7.9 billion and US$149.6 billion respectively (as of Apr. 30), International Consolidated Airlines Group SA (OTCMKTS:ICAGY) and Vodafone Group Plc (ADR) (NASDAQ:VOD) are both major players in their industries. Both companies have a reach far beyond the U.K. itself but are not immune from troubles in their home country. With slow growth in the U.K., many investors are still hesitant about investing in the country. It’s therefore up to individual investors to do further research and decide whether they want to invest in U.K. based companies whether they’re listed here or not.

The article A Tour Of Countries: United Kingdom originally appeared on Fool.com is written by Alexander MacLennan.

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