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Shareholder Group Urges Vodafone to Liquidate Verizon Wireless Stake

6:35 am on June 8, 2007 | Category: Business, Corporate, Wireless

A consortium of shareholders within the international wireless giant, Vodafone Group, is calling on the company to spin off its 44.4% stake in America’s second largest cell phone operator., Verizon Wireless.

Vodafone acknowledged yesterday that it had received a letter from the group, known as Efficient Capital Structures, urging it to sell its Verizon stake and return the estimated 40-billion cash windfall to shareholders. ECS is requesting that the company table four motions at its annual general meeting next month, and allow shareholders to vote on the issue of Verizon Wireless ownership.

In accordance with corporate policy, Vodafone executives have little choice but to allow a such a vote. Support for the proposed motions is expected to be very limited, however, due to the company leadership’s staunch determination to maintain a position in the U.S. wireless market.

“Vodafone believes the proposals from ECS would undermine both its ability to maximize the value of its shareholding in Verizon Wireless and Vodafone’s ability to invest in its businesses as well as exploit potential value creating opportunities,” the company said in response to the shareholder proposal.

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