Why Vodafone Stock Rocketed Almost 13% Higher Today

Yahoo Finance ·

A large stake of international telecom service provider Vodafone ( VOD +12.54% ) changed hands late on Thursday, and investors reacted accordingly the next trading day. Friday saw the company's American Depositary Receipts (ADRs) rise by nearly 13% as a result. The buyer of the Vodafone stake was Xavier Niel, a French entrepreneur and billionaire who founded (and still owns most of) that country's telecom and tech company Iliad. Niel purchased the stake through a family investment vehicle called Vega. The seller was Emirates Telecommunications Group. The stake represents around 16% of the company, and the price was just over 112 British pence ($1.50) per Vodafone share. All told, the purchase price was equivalent to roughly $6 billion and represented a premium of around 13% over the company's most recent closing level -- hence the double-digit bounce in the ADR price the following day. The deal makes Niel/Vega the telecom's largest shareholder.

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