Vodafone shareholders back Sarin
Shareholders of British telecom giant Vodafone have rejected an activist hedge fund's restructuring proposal to unlock $76 billion worth value, while approving the re-appointment of its India-origin chief Arun Sarin.
By PTI |
LONDON: Shareholders of British telecom giant Vodafone have rejected an activist hedge fund's restructuring proposal to unlock $76 billion worth value, while approving the re-appointment of its India-origin chief Arun Sarin as well as induction of a former Hutchison managing director to the company's board.
Vodafone said in a statement its shareholders rejected by an overwhelming vote at an AGM held yesterday the four resolutions proposed by Efficient Capital Structures (ECS), which had called to spin-off its 45 per cent stake in US mobile venture Verizon Wireless and limit the company's ability to make acquisitions without special resolutions.
ECS, backed by telecom equipment group Marconi's former CEO designate John Mayo, had shot off a letter to Vodafone board early last month calling for a restructuring exercise that could release 17-38 billion pounds in shareholder value and had sought the inclusion of related resolutions to be put to vote at the annual AGM.
However, the board had rejected the restructuring call saying such business strategies could have prevented it from recent acquisitions such as Hutch-Essar in India.
The company had said on June 7 that the proposal would significantly constrain the board's flexibility in managing Vodafone's global business and implementing its successful strategy to deliver value to shareholders.
Vodafone said the requirement to seek shareholder approval for acquisitions at lower levels would place it at a material disadvantage in competing for assets.
Vodafone said in a statement its shareholders rejected by an overwhelming vote at an AGM held yesterday the four resolutions proposed by Efficient Capital Structures (ECS), which had called to spin-off its 45 per cent stake in US mobile venture Verizon Wireless and limit the company's ability to make acquisitions without special resolutions.
ECS, backed by telecom equipment group Marconi's former CEO designate John Mayo, had shot off a letter to Vodafone board early last month calling for a restructuring exercise that could release 17-38 billion pounds in shareholder value and had sought the inclusion of related resolutions to be put to vote at the annual AGM.
However, the board had rejected the restructuring call saying such business strategies could have prevented it from recent acquisitions such as Hutch-Essar in India.
The company had said on June 7 that the proposal would significantly constrain the board's flexibility in managing Vodafone's global business and implementing its successful strategy to deliver value to shareholders.
Vodafone said the requirement to seek shareholder approval for acquisitions at lower levels would place it at a material disadvantage in competing for assets.
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