UK mobile operator Vodafone is ready to play an active part in future European consolidation, CEO Vittorio Colao has said.
Speaking after posting full-year results yesterday, Colao said consolidation in Europe would be a “good thing” for the…
UK mobile operator Vodafone is ready to play an active part in future European consolidation, CEO Vittorio Colao has said.
Speaking after posting full-year results yesterday, Colao said consolidation in Europe would be a “good thing” for the group.
“There are a number of situations where I can see consolidation being beneficial to all,” he said.
However, a spokesman for the group later played down suggestions that it was looking to move away from earlier commitments to avoid large acquisitions and sell off minority stakes.
“I don’t think there has been any step change”, he said in an email to TelecomFinance.
“We always said we were pro-consolidation (and yes, we could be both passive and active in this respect) and you have seen our strategy on minority stakes in action. So, don’t assume that this will mean large acquisitions are back on the agenda.”
He also pointed to Vodafone’s E120m acquisition last month of Dutch telecoms retailer MacIntosh Retail as an example of a “consolidation play in the retail part of our business”.
Under pressure from shareholders to concentrate on its core businesses, the group last year revealed that it was looking to offload several minority investments in foreign companies in order to return money to investors.
Over the last year, it has sold stakes in China Mobile and French mobile operator SFR, and is currently involved in a process to sell its 25% stake in Polish mobile operator Polkomtel.
Some reports have also suggested it could consider selling its 45% stake in US mobile operator Verizon Wireless, a JV it shares with American telco Verizon.
Vodafone declined to comment on the speculation. However, the notion was dismissed by a source close to the company, who said this would be unlikely because there is a general perception within the group that Verizon could start awarding sizeable dividends to Vodafone shareholders next year.
