Minority Stakes Sale eyed by Vodafone

The chief executive of Vodafone, one of the leading UK mobile broadband operators  have sought on Friday to quell a rebellion that is very much on cards at the annual meeting of the company being held next week by discussing the prospect of selling off some of the minority stakes of the group in overseas mobile operators.

As a matter of fact, the first quarter update of Vodafone was used by Vittorio Colao, the company’s chief executive, to declare that the minority investments of the company were hardly core assets. He maintained that they were not there to manage minorities.

The mobile operator regarded as the most downright transaction a disposal of the company’s stake of 3.2 per cent in China Mobile worth GBP 4.2 billion. Nevertheless, the firm was willing to consider selling of its 44 % of SFR and 45 % of Verizon Wireless. While Verizon was the leading wireless phone group in the US, SFR has been the second prominent operator in France.

Colao added that disposal proceeds could be returned to the shareholders or utilized for fresh investments.

Meanwhile, the activist investor, Ontario Teachers’ Pension Plan, which has a 0,42% stake in Vodafone has been calling for board changes, which would lead to a significant restructuring. It is understood that the body was planning to vote at the annual meeting of Vodafone against re-electing Sir John Bond as the chairman.

Comments are closed.