Small Investors Group Presses Vodafone To Spin Off Its Stake In Verizon Wireless

Efficient Capital Structures' chairman ramps up his campaign for Vodafone to sell its 45% stake in Verizon.
An investor in Vodafone Group is stepping up its campaign to encourage Vodafone to spin off its 45% stake in Verizon Wireless in advanced of Vodafone's annual general meeting July 24.

Efficient Capital Structures (ECS) was rebuffed in an earlier attempt to capitalize on Verizon Wireless' successful mobile phone services by spinning off Vodafone's equity. The Verizon service is adding subscribers at a rapid rate and is highly profitable. Vodafone's global cell phone services, many of which are under financial pressure, generally utilize GSM technology while Verizon's utilizes EV-DO technology.

ECS said its chairman, Glenn Cooper, intends to discuss his plan for a spin-off, including the creation of a tracking stock for the Vodafone stake. A talk by Cooper on the subject will be hosted by research and proxy firm Glass, Lewis, & Co., ECS said, noting that Glass Lewis offers a forum for institutional investors to discuss their views on proxy-related issues.

The estimated value of Vodafone's stake in Verizon Wireless has consistently risen as the wireless operation adds customers and markets additional services.

Vodafone has rejected past ECS overtures to spin off its stake in the Verizon Communications unit.

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