Vodafone Decides Not To Sell Verizon

LONDON -(Dow Jones)- Mobile phone giant Vodafone Group, Wednesday dispelled speculation around its operations in the United States, saying it would not sell a$10 billion stake in its U.S. Verizon Wireless joint-venture to business partner Verizon Communications.

Some investors have recently been critical of how much value the unit delivers to shareholders.

Vodafone, the world's largest mobile phone operator by revenues, said it had "decided not to exercise its rights" to sell up to a $10 billion stake in the United States' second largest mobile phone operator to Verizon Communications Inc, which owns the remaining 55% stake in the company.

"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," said Vodafone in a statement Wednesday.

Verizon Wireless has 62 million customers in the United States.

Vodafone recently faced criticism from activist shareholder group ECS, supported by former Marconi executive John Mayo, which called for a spin-off, or issue of a tracking stock for the company's stake in Verizon Wireless. The group argued that by doing so, Vodafone could deliver greater value to shareholders.

However, last month Vodafone shareholders overwhelmingly rejected ECS's resolutions at the company's annual shareholder meeting.

Shares closed Tuesday at 159 pence.

-By Daniel Thomas, Dow Jones Newswires; 44-20-7842-9264; dan.thomas@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 8th August 2007