A sign for a Vodafone store is pictured in central London on May 22, 2012. British mobile phone giant Vodafone on Tuesday said annual net profits dropped almost 13 percent as eurozone losses offset asset sale gains and strong performances in emerging markets and the US. Vodafone said profit after tax hit £6.957 billion (8.6 billion euros, $11.0 billion) in the 12 months to March 31, down 12.7 percent compared with 2010/11. Revenue rose 1.2 percent to £46.4 billion in 2011/12. AFP PHOTO / CARL CO
THE NEWS: Vodafone says it is in advanced talks to sell its 45 percent stake of Verizon Wireless back to the cellphone service provider for $130 billion in cash and stock.
THE CONTEXT: It would be the second-largest acquisition deal on record if it goes through, but there is no guarantee a deal will be struck. If completed, it would give Vodafone additional cash to pursue its expansion in Europe. It would also give Verizon Communications the opportunity to boost its quarterly earnings.
WHAT'S NEXT: If terms are agreed upon, Vodafone says an announcement will be made "as soon as practicable."
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