Verizon Communications Inc. (NYSE:VZ) is in the final stages of negotiations to acquire a 45 percent stake in its joint venture business with Vodafone Group Plc (NASDAQ:VOD) (LON:VOD) for around $130 billion, according to Bloomberg reports. Verizon is taking assistance from different banks to raise $10 billion from each one to pay the required $60 billion for the deal.

Verizon

It is expected that the deal could be announced around September 2, according to sources who revealed it to Bloomberg.

Earlier reports hinted on a possible deal

Earlier The Wall Street Journal reported that both companies are back on track, though there was a haze concerning whether Vodafone Group Plc (NASDAQ:VOD) (LON:VOD) has agreed upon the price offered by Verizon or whether Verizon has altogether tabled a new deal.

In April, initial reports from Reuters claimed that Verizon Communications Inc. (NYSE:VZ) has hired advisers to conclude the $100 billion deal and is looking forward to offer 50:50 cash and stock to acquire 45 percent stake in Verizon wireless.

Analysts at the time suggested that Verizon Communications Inc. (NYSE:VZ) was offering too low, and the value of Vodafone Group Plc (NASDAQ:VOD) (LON:VOD) holdings is near $120 billion. The Journal reported that the change in financial market trends like increasing interest rates, as well as changes in the United States cell phone business has narrowed the rift between both companies.

There was no comment from the Verizon Communications Inc. (NYSE:VZ) spokesperson over the matter. However, Spokesman from Vodafone said that there is “no certainty that an agreement will be reached.”

Both Verizon and Vodafone were considering several options

Last month, Gerard Kleisterlee, Vodafone chairman said that the company will look into any offer for selling out its stake to Verizon Communications Inc. (NYSE:VZ), provided the deal offers more value to investors than at present.

Both companies have been making efforts to smooth their ties. Bloomberg News published a report in March saying that both companies are considering alternatives such as the buyout of the venture by Verizon, or a full merger of the carriers.

Vodafone sensing possible deal

Shares of Vodafone Group Plc (NASDAQ:VOD) (LON:VOD) moved up to as much as 18.1 pence to 207.40 pence and traded 8.5 percent higher at 205.30 pence as of 10:33 a.m. in London. Market capitalization of Vodafone, at present, stands at 99.5 billion pounds ($154 billion). On the other hand, Verizon’s shares came down 0.8 percent to $46.56 in New York yesterday, giving it a market capitalization of $133 billion.

If the deal concludes, it will be the latest one in the row of mergers and acquisitions in the United States mobile phone market, which has outperformed Europe in technologies that speed up  Internet browsing and video streaming for computers and smartphones.