Dialling the discount

8 September 2010 By Una Galani Follow @ugalani

The telecoms giant’s sale of a 3.2 pct stake in China Mobile for $6.6 bln is good housekeeping, and there’s more tidying to do in its sprawling portfolio. But Vodafone’s sumoftheparts discount will persist until it finds a way of unlocking value from Verizon Wireless.

This content is for Subscribers only

Context News

Vodafone has sold its entire 3.2 percent stake in China Mobile for roughly $6.6 billion, nearly double what the UK mobile operator paid for the investment almost a decade ago.

Vodafone announced on Sept. 7 that it had agreed to sell the holding of 643 million shares via an accelerated book build offering handled by Goldman Sachs, Morgan Stanley and UBS.

Vodafone was selling at HK$79.20 pershare, or a 3.4 percent discount to the last closing price, according to Reuters.

China Mobile shares fell 4 percent to HK78.90 following the announcement.

Email a friend

Please complete the form below.

Required fields *