Vodafone 'shuns $38bn Verizon Wireless bid'

Vodafone has reportedly rebuffed a $38bn offer for its stake in Verizon Wireless from its partner in the joint venture, US telco Verizon.

According to a report in The Daily Telegraph, the two companies have started talks about the potential sale of Vodafone's 45 per cent share in the mobile operator, although Arun Sarin is said to have rejected the $38bn offer as too low. Vodafone is believed to value its stake at $50bn.

Verizon has made no secret of its desire to take full control of the wireless joint venture, while Vodafone has come under increasing pressure to sell its stake in Verizon Wireless, the US' largest mobile operator, in order to return cash to shareholders.

The stock market reacted favourably to the news, with shares in Vodafone climbing slightly.

While Vodafone has previously positioned itself as lukewarm to any sale, the talks follow a period of upheaval at Vodafone which has seen the company divest itself of its Japanese operations, as well as restructuring the business and reshuffling management accordingly.

The mobile company has also reportedly been considering buying the ISP Tiscali as a prelude to offering converged services.

No one at Vodafone was available for comment.