Vodafone to sell minority stakes

By DAILY MAIL REPORTER
Updated: 17:33 EST, 29 August 2010

Mobile phone giant Vodafone is thought to be planning the £4billion-plus sale of its 3.2 per cent stake in China Mobile.

The sell-off could be confirmed next month before the group's strategy presentation in November.

Chief executive Vittorio Colao is also mulling the divestiture of its minority stakes in Poland and France in order to appease shareholders and lift its share price.

Disposals: Vodafone could raise more than £10billion by selling small minority stakes, according to analysts

Since taking over as chief executive in summer 2008, Colao has been trying to increase growth in Vodafone's existing markets rather than continuing with the acquisition drive that has given it a global presence but left some shareholders unimpressed.

The Ontario Teachers' Pension Plan, a Canadian fund with a 0.42 per cent stake in Vodafone, recently called for a boardroom shake- up because of concerns about the mobile operator's '' strategic weakness' and ' disastrous' acquisition record.

OTPP believes it should realise the value of its minority investments - including a 45 per cent stake in US mobile phone operator Verizon Wireless.

Analysts believe a disposal of small minority stakes could raise over £10billion which then could be used to reduce debt and to increase share buybacks.

Colao has for ages been pressing for Verizon to resume dividend payments, which were suspended in 2005.

But many brokers including evolution Securities believe Verizon will not agree to a dividend policy, in an effort to maintain pressure on Vodafone to exit.

Vodafone reported second quarter figures last month revealing that service revenues had grown for the first time since the global recession hit.