Vodafone released a statement Wednesday defending its decision not to exercise an option to sell $10 billion worth of its jointly held Verizon Wirless business to Verizon. "Verizon Wireless is a market-leading business with strong growth prospects and the Board of Vodafone continues to believe that retaining its full 45% interest is in the best interests of shareholders," the statement read. Verizon owns the remaining 55% of Verizon Wireless. Vodafone had come under criticism from activist shareholder group ECS, which urged it to unlock greater shareholder value by spinning off several holdings including its Verizon Wireless stake. In July, Vodafone shareholders rejected ECS's proposal by a wide margin. Vodafone's shares have risen 47.2% over the recent 12-month period. They are higher by 0.25% in intraday trading in London.
Sources: Press Release, Bloomberg, MarketWatch, Dow Jones Newswires, Wall Street Journal, Financial Times
Commentary: Is Verizon Coming Closer to Owning Verizon Wireless? • Vodafone Denies Intention To Buy Verizon, But Talk Will Persist • Vodafone Denies It's Considering a $160B Bid for Verizon
Stocks/ETFs to watch: VOD, VZ. Competitors: TI, T, S, DT. ETFs: PTE, WMH, IXP
Earnings call transcripts: Vodafone Group FY 2006 Earnings Call Transcript
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