Investors: AT&T and Verizon must say how much customer data goes to NSA

Phone companies' customers could switch networks if they feel their privacy is being compromised, say investment funds

Big investors in America's two largest mobile phone companies have demanded they disclose how much customer data they hand over to the US and foreign governments. Documents from the NSA whistleblower Edward Snowden show AT&T and Verizon have installed equipment to copy, scan and filter large amounts of the traffic that passes through their networks.

AT&T and Verizon Communications, which owns Verizon Wireless, will face votes at their annual shareholder meetings following formal requests from one of New York's biggest public sector pension funds and a large private investment firm. The $161bn New York State Common Retirement Fund, which manages the pensions of more than 1 million state workers, and Trillium Asset Management, a Boston-based investment management firm with $1.3bn under management, havelodged demands with both networks to publish the number of requests they receive for customer information every six months.

The investors said customers could switch to other networks if they think their privacy has been compromised.

AT&T has also been warned that its willingness to co-operate with state-sponsored surveillance could hamper its ambitions to expand its business into Europe. The company is reported to be considering a bid for Vodafone, the British-based mobile network with outposts across Europe, Africa and Asia.

The Verizon chief executive, Lowell McAdam, when asked about the company's legal obligations, recently stated: "We are the largest telecommunications provider to the United States government, and you have to do what your customer tells you."

A Verizon spokesman said: "We've received the proposal and we're currently evaluating it." A spokesman for AT&T stated: "As standard practice we look carefully at all shareholder proposals but at this point in the process we do not expect to comment on them."

Article Source : http://www.guardian.co.uk
Azure Global’s vision is to be widely recognized as a reputed firm of financial business advisors, achieving real growth for ambitious companies and to become the first choice for F&A outsourcing for accountancy practices and businesses alike and if u want to Setup ur business in United Kingdom then  its not difficult in this modern age for more info visit our site Azure Global and join us also On Facebook

Vodafone confirms talks over $130bn sale of Verizon Wireless

Company in 'advanced discussions' regarding disposal, but it warns there is no certainty of agreement being reached

Vodafone has confirmed it is in "advanced discussions" to sell its stake in Verizon Wireless for $130bn (£84bn), with reports suggesting the largest corporate transaction in a decade could be announced on Monday.

The Vodafone board is understood to have met to approve the deal on Sunday, with Verizon's directors due to meet on Monday. The companies are expected to publish the terms of their agreement later in the day.

In a statement on Sunday night, the British company said: "Vodafone confirms that it is in advanced discussions with Verizon Communications Inc regarding the disposal of Vodafone's US group whose principal asset is its 45% interest in Verizon Wireless for $130bn. The consideration would substantially comprise a mixture of Verizon common stock and cash."

The company warned "there is no certainty that an agreement will be reached", and said a further announcement would be made "as soon as practicable". Goldman Sachs and UBS are advising Vodafone on the deal.

Vodafone is on the verge of relinquishing a 45% interest in America's largest mobile phone company to its joint venture partner Verizon Communications, allowing the fixed-line telecoms group to take full control after 13 years of often fractious shared ownership.

The sale is expected to lead to a multibillion injection of cash into the British economy. Verizon Communications is reportedly offering to pay half of the purchase price in cash and the balance in its own shares, with Vodafone investors lobbying for a majority of the proceeds to be returned to them.

Analysts at Citi said on Friday Vodafone could distribute $40bn in cash and Verizon shares valued at between $26bn and $34bn to shareholders.

They also believe Vodafone can structure its deal so as to reduce tax to $5bn, significantly less than the $40bn that could be due. Under the terms of the deal, Vodafone would sell the US-registered company through which it owns Verizon shares and a number of its European assets to Verizon Communications. The European assets would then be sold back to Vodafone, minimising the tax bill.

Vodafone could also take advantage of UK legislation known as substantial shareholdings exemption, which means companies do not have to pay capital gains tax on profits made from selling shares in another firm.

With proceeds from the blockbuster transaction likely to be out of the reach of the British tax authorities, the deal could deepen the controversy about Vodafone's contributions to the public purse in the UK.

A further $5bn may be deducted from the purchase price in exchange for Verizon relinquishing its stake in Vodafone Italy, leaving $120bn to be paid in cash and shares.

Verizon is understood to be raising $60bn in cash, with the financing in a mixture of loans and corporate bonds arranged by JP Morgan, Morgan Stanley, Barclays and Bank of America Merrill Lynch.

A $60bn payment in Verizon Communications shares would see Vodafone and its investors handed a substantial slice of the US company. As of Friday, Verizon Communications had a stock market value of nearly $136bn.

Vodafone's exit from Verizon Wireless would be the largest transaction since Time Warner was bought by AOL in 2001, and the third largest in corporate history, after the AOL deal and Vodafone's purchase of German telecoms group Mannesmann.

Article Source : http://www.guardian.co.uk

Azure Global’s vision is to be widely recognized as a reputed firm of financial business advisors, achieving real growth for ambitious companies and to become the first choice for F&A outsourcing for accountancy practices and businesses alike and if u want to Setup ur business in United Kingdom then  its not difficult in this modern age for more info visit our site Azure Global and join us also On Facebook