Verizon Wireless to dole out $10B to parent companies

Verizon Wireless announced today that its board of directors has approved a “distribution” of $10 billion to parent companies Verizon Communications Inc. (VZ) and Vodafone Group plc (VOD) to be paid on Jan. 31, 2012. The distribution will be paid in accordance to the ownership structure, which has Verizon controlling 55% of the wireless operator and Vodafone controlling the remaining 45%.
The move appears to placate ongoing calls by Vodafone to be afforded some of the vast earnings being collected by Verizon Wireless. The deal also provides Verizon with much-needed cash to help it continue providing dividends to its shareholders.
Verizon Wireless last week reported a 10% year-over-year increase in revenues, surging to nearly $17.3 billion for the second quarter, and nearly $4.7 billion in operating income.