Monday 16 May 2022

Vodafone shares up 4% after #UAE group buys 9.8% stake | Reuters

Vodafone shares up 4% after UAE group buys 9.8% stake | Reuters

Shares in Vodafone (VOD.L) jumped 4% in early trade on Monday after the United Arab Emirates-based telecoms company e& (ETISALAT.AD) revealed it had bought a 9.8% stake in the British mobile operator.

Formerly known as Emirates Telecommunications Group, e& said it had no intention of making an offer for the whole of Vodafone and it had spent $4.4 billion to invest at an "attractive valuation" to benefit from a diversification in currencies.

The company said it was fully supportive of Vodafone's board, which has come under pressure from other investors after the group struggled in its mature European markets where competition and regulation have pushed prices lower.

Vodafone Chief Executive Nick Read has vowed to lead a wave of consolidation in Europe to rebuild markets and boost returns but in recent months he has rejected an approach for the group's Italian assets and missed out on a deal between rivals in Spain. read more

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