Vodafone rejects call to restructure
08 Jun 2007
London: UK-based mobile giant Vodafone has turned down a restructuring call by Efficient Capital Structures (ECS), a hedge fund backed by telecom equipment maker Marconi, unlock up to $75 billion to shareholders.
Marconi Plc''s former CEO John Mayo sent a letter to Vodafone earlier this week saying that restructuring could release £17 to £38 billion pounds in shareholder value and asked that four resolutions be put to vote at the company''s 24 July AGM.
Vodafone replied late last night saying that its board had reviewed the proposals and ''''unanimously concluded that continued execution of its clearly stated strategy will deliver greater value for shareholders.''''
Vodafone said the proposed resolutions seek to allow shareholders to give directions to the board at lower voting thresholds and limit its ability to make acquisitions.
It would also significantly constrain the board''s flexibility in managing Vodafone''s global business and implementing its successful strategy to deliver value to shareholders.
However, Vodafone
said that the requirement to seek shareholder approval for
acquisitions at the low levels would place it at a material disadvantage in competing
for assets.