McAdams was key to the finalization of Verizon-Vodafone buyout deal
The stage for the USD130 billion buyout of erstwhile partner buyout of Vodafone Group Plc from the venture in Verizon Wireless was set two years ago. The appointment of its new CEO Lowell McAdam, whose two decade long experience in the wireless industry was well-entrenched in the European market.
Executives at Verizon had been negotiating for this deal for about a decade and was declined by Vodafone who had refused to part with a virtual cash cow in the telecommunications industry. Former CEOs clashed with one another over leadership and buyout, leading to the long term impasse.
McAdam is an Ivy League trained engineer who had a working relationship with Vodafone CEO Vittorio Colao. Upon assuming the CEO position in Verizon, he promised to expand ther wireless business, adopting a collaborative relationship with suppliers. His working style, previous relationships with Vodafone executives and willingness to pay allowed the two firms to move past the imapsse.
According to Macquarie Securities USA analyst Kevin Smithen, "This deal was a nonstarter until McAdam came on board. You have to give McAdam credit for building a strong relationship with Vodafone and earning their trust."
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