Vodafone has hinted that its board may consider selling its 45 per cent stake in US operator Verizon Wireless. However, in an effort to allay shareholder concerns, the company defended its investment in Verizon in terms of both strategy and valuation.
The investor apprehension stems from Morley Fund Management, the sixth largest shareholder in the company, publicly expressing its disquiet over Vodafone’s global strategy. Investors fear that Vodafone’s international interests may lead to the company not focusing enough on its core markets in Europe, where intense competition is hitting revenue growth and margins. On the other hand, pulling out of the US market, according to USbased analysts, would mean selling the controlling share in Verizon Communications (which has shown interest in buying out its UK-based partner) and would help raise ??25-??30 billion ($44.7-$53.6 billion) for Vodafone.
