Sunday, May 5, 2013

Will Verizon Borrow Billions to Become the Biggest?

As discussions intensify over the joint ownership of Verizon Wireless by both Vodafone (NASDAQ: VOD  ) and Verizon Communications (NYSE: VZ  ) , and the potential buyout by Verizon Communications, the specifics of the deal continue to garner attention. While the complete takeover would make Verizon the largest phone carrier in the United States, beating out current leader AT&T (NYSE: T  ) , there are issues for the company that are important for investors to consider. To complete the deal, Verizon will need to raise debt capital and must contend with a premium price.

In the following video, Fool.com contributor Doug Ehrman discusses the overall structure of the transaction and considers the pros and cons for Verizon.

In addition to considering the appeal of an independent Verizon, there are other significant opportunities available in the market. The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

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