Vodafone sells stake in China Mobile

Vodafone has begun cutting its stakes in mobile networks around the world by selling its shareholding in China Mobile for £4.3bn. The company announced last night that it has sold its 3.2% stake in the world's biggest mobile operator. Around 70% of the proceeds will be returned to shareholders through share buyback. This is the first act in a drive to cut Vodafone's "non-strategic" assets and focus on Europe, India and Africa, following pressure from investors. Chief executive Vittorio Colao said the company would still co-operate with China Mobile through network sharing and joint work on green technologies. He added that Vodafone had made a sizeable profit, having paid $3.25bn (£2.11bn) for the stake. Under its former management team, Vodafone pursued an aggressive expansionist policy worldwide. This strategy is now discredited after the Wall Street research firm Sanford Bernstein estimating that it has caused Vodafone, which has a market capitalisation of £84bn, to be undervalued by up to 40%.