Verizon Wireless IPO delay expected

(Telephony) Vodafone is expected to delay the initial public offering for shares in Verizon Wireless. Though it would be the second delay in less than six months, Vodafone reportedly could be preparing to make a cash offer instead.

While the first delay was the result of market conditions, this one could be the result of timing.

“The first quarter has been relatively slow. They could be waiting until the new government is in place,” said Larry Swasey, vice president of communications research at Allied Business Intelligence. “They are being smart if they are waiting until the second quarter.”

The current floatation deadline is at the end of the first quarter. Verizon Wireless originally intended to float last August, with hopes of raising about $10 billion.

Along with news of the carrier’s possible IPO postponement, it was reported that as many as 460,000 new shares of NTT DoCoMo--Vodafone’s competitive rival--would sell for $17,844 each. Reportedly, 40,000 shares are expected to go to domestic institutional investors, 220,000 shares to retail investors in Japan, 70,000 shares to U.S. investors and 70,000 to other international investors.

In addition, if Goldman Sachs and Salomon Smith Barney--the firms handling the NTT DoCoMo deal--opt to sell another 60,000 shares in overseas markets to meet extra demand, the value of the deal could reach $8.2 billion, up from $8 billion.