UK mobile operator Vodafone has appointed headhunter MWM Consulting to replace embattled chairman Sir John Bond before next year’s AGM, reported the Financial Times.
Vodafone declined to comment on the speculation, but a source close to the group…
UK mobile operator Vodafone has appointed headhunter MWM Consulting to replace embattled chairman Sir John Bond before next year’s AGM, reported the Financial Times.
Vodafone declined to comment on the speculation, but a source close to the group confirmed it was working with the headhunter but only as part of succession plans in place for all members of its entire board.
Bond, who has chaired Vodafone for four years, has come under shareholder attack over the operator’s strategy and minority stake building.
Canada’s Ontario Teachers’ Pension Plan led 6.53% of shareholders in voting to remove him at July’s AGM.
Vodafone’s 45% stake in US mobile operator Verizon Wireless is a particular source of contention, since the company has received no dividends since 2005 because majority owner Verizon Communications has earmarked proceeds for other investments. Some market observers believe that by selling Verizon Wireless, Vodafone wouldn’t have to worry about selling its other minority stakes. Others, though, think that the UK giant would be in a disadvantaged position were it to sell off the US stake – one, because eventually shareholders will profit from one of the world’s largest market, and two, because there is only one likely buyer, Verizon Communications.
Vodafone CEO Vittorio Colao indicated at the July AGM that he does not see minority stakes as core. Other such investments include French mobile operator SFR (44%), China Mobile (3.2%) and Polkomtel (24.39%).
The summer has been rife with rumours that Vodafone was looking to sell each of these stakes. MWM Consulting was unable to comment before the press deadline.
