Tough call

8 January 2010 By Una Galani Follow @ugalani

Verizon Communications’ boss is saying dividends from the U.S. mobile joint venture with Vodafone might be delayed again and is downplaying any other solution to the troubled structure. But that’s unsurprising. Saying otherwise would weaken his negotiating position.

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Verizon Communications Inc chief executive Ivan Seidenberg has downplayed any nearterm prospect of paying dividends from its Verizon Wireless subsidiary.

Seidenberg said at an industry conference that Vodafone might have to wait another three to four years for a dividend, providing there are no other uses for the cash. He said he would consider a deal to buy out the 45 percent stake "if the price were right" but added the move was "not a high priority on our radar".

He also said he had "little faith" in a potential merger of the two parent companies, an alternative solution often suggested by industry observers, pointing to the "different operating philosophies".

Seidenberg also warned of a shortfall in Verizon Communications' 2009 profits.

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