Vodafone slashes debt after selling stake in phone firm

Vodafone says it has passed its debt reduction target, after it sold its stake in Italian company Infostrada.

Vodafone believes its debt figure, currently around £7bn, is now lower than most of its rivals.

The sale of telecoms company Infostrada to Italian state-owned utility Enel was completed at a reduced price after share prices fell in recent weeks.

Vodafone had agreed a £7.7bn price tag in October, but that was subsequently reduced to around £6 billion earlier this month.

Newbury-based Vodafone said the sale means it has now exceeded its target of cutting debt to at least £10bn by the end of March.

The figure had stood at more than £13bn in September, but the sale of Vodafone's stake in France Telecom for £7bn helped the cause.

Vodafone's debt mountain had risen after bidding for third generation mobile phone licences and the acquisition of rival firm Mannesmann.