Vodafone Mulling Swiss Network Sale

Following last weeks sale of its 25% stake in Belgium's Proximus, Vodafone is reported to be preparing to sell it's minority stake in Switzerland's dominant mobile network operator, Swisscom Mobile. The stake is expected to fetch as much as US$3.8 billion for the carrier. However, the stake is valued at only around US$3.2 billion as a Vodafone asset.

A report in the UK newspaper, The Times at the weekend cited unnamed sources for the information. No formal talks have commenced yet, but a sale is expected before the year end.

A Vodafone spokesman said the report was just speculation.

Swisscom, the parent company of Swisscom Mobile sold the stake to Vodafone in 2001 for CHF4.5 (US$3.6) billion.

Vodafone currently has 2 members on Swisscom Mobile's board - out of a total of 7 directors. There is also an existing "Enhanced Service Provider" agreement between Swisscom's German subsidiary, Debitel and Vodafone Germany, as well as access to Vodafone's pan-European roaming network and Vodafone Live platform."

Posted to the site on 28th August 2006