Vodafone’s biggest shareholder, Emirates Telecommunications, has opened talks with the troubled British telecom group to push for changes on its board.
The investor, also known as e&, began discussions with Vodafone on April 12th about the non-executive directors to engage “on a variety of topics”, it said in a regulatory filing late Monday. The Abu Dhabi-based company, which is majority owned by the United Arab Emirates’s sovereign wealth fund, now owns 14.6 per cent of Vodafone, up from 14 per cent.
Vodafone’s shares, which have been steadily declining for years, have dropped about 25 per cent since e& announced its initial holding in May. The telecom company in December ousted chief executive Nick Read – who struggled to appease investors with moves to streamline the business and sell assets – and the board is yet to name a replacement to lead Vodafone’s turnaround.
Vodafone rose 2 per cent in London trading on Tuesday.
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Two of Vodafone’s non-executive directors – Clara Furse and Crispin Davis – may step down as soon as this year because they have served the maximum, nine-year term recommended under the UK’s corporate governance code.
A representative for Vodafone declined to comment. A spokesperson for e& did not immediately respond to a request for comment. Furse and Davis could not immediately be reached for comment. Vodafone usually holds its shareholder meetings, where board directors are elected, in July.
E& is one of three strategic holders who now control more than a fifth of the Newbury, England group, including Liberty Global, which holds almost 5 per cent, and French billionaire Xavier Niel, who said he bought a 2.5 per cent stake in September.
E&, which has said it has regulatory approval to raise its stake in Vodafone to 15 per cent, has explored a potential investment in Vodafone’s African business, Vodacom Group Ltd, people familiar with the matter have said. – Bloomberg
