Vodafone passes on VZW sale

Vodafone Group plc said it had no plans to sell its stake in its U.S. joint venture Verizon Wireless.
In an effort to end speculation about its U.S. business, the British operator said it had declined to exercise its rights to sell up to $10 billion of the company’s shares to partner Verizon Communications Inc. Vodafone owns 45% of Verizon Wireless-a stake valued at roughly $50 billion-while Verizon Wireless owns 55%.
“Verizon Wireless is a market-leading business with strong growth prospects,” Vodafone said in a statement to the London Stock Exchange, “and the board of Vodafone continues to believe that retaining its full 45% interest is in the best interests of shareholders.”
Vodafone investor Efficient Capital Structures had called for Vodafone to spin off its stake in the carrier and instead focus on growing Vodafone’s business in Europe and Asia. But the plan was overwhelmingly rejected at Vodafone’s annual general shareholders meeting last month.
Vodafone’s shares were up 75 cents, or more than 2%, to $33.27 on the New York Stock Exchange following the announcement.