Vodafone moves to quiet rift rumours

MOBILE phone giant Vodafone has tried to draw a line under rumours of a boardroom rift after its chairman released a statement backing the group’s chief executive.

Speculation was rife in the Sunday papers that chairman Lord MacLaurin had been trying to oust chief executive Arun Sarin after disappointing announcements by the company.

It was claimed Lord MacLaurin had tried to force a vote of no confidence in the Vodafone boss, while there was speculation he would use a key meeting with the group’s largest investors today to gauge support for the chief executive.

But late last night Lord MacLaurin issued a brief statement saying Mr Sarin had “the complete backing of the board”, according to the Sunday Telegraph. No one from Vodafone could be contacted to comment.

The rift is widely seen to be between Vodafone’s so-called old guard, consisting of Lord MacLaurin and former chief executive Sir Christopher Gent, who is now honorary life president, and the team of executives appointed by Mr Sarin since taking over at the group.

Vodafone dealt a blow to investors last month by revealing revenue growth was likely to slow and its assets were overvalued by as much as £28 billion (€40.6bn).

Meanwhile there was speculation the group could be targeted in a £100bn (€145bn) takeover bid by venture capitalist groups.

The Mail on Sunday said venture capitalists including Apax and CVC Partners are understood to be weighing up the possibility of a bid.