Vodafone 'life president' resigns amid rumours of rift

Former Vodafone chief executive Sir Christopher Gent today gave up his honorary position of life president of the group as the mobile phone giant sought to quash rumours of a boardroom rift.

At the same time Vodafone’s chairman Lord MacLaurin issued a statement publicly backing its chief executive Arun Sarin following media reports that he had tried to have the new boss ousted.

Lord MacLaurin said he was “totally supportive” of chief executive Arun Sarin, adding that he had read media reports of a rift with “great concern”.

The moves follow extensive speculation in the Sunday papers that Lord MacLaurin had been attempting to force out Mr Sarin following a run of disappointing announcements from the company.

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

The boardroom rift was widely reported to be between Vodafone’s so-called old guard, consisting of Lord MacLaurin and Sir Christopher, and the team of new executives appointed by Mr Sarin since taking over at the group.

But Sir Christopher said he was relinquishing his position, which has no executive or advisory responsibilities, following allegations that he had used it to interfere with the company and obstruct the current management, allegations that he said were “without foundation”.

He added that if there was a whispering campaign or conspiracy, which he doubted, he was not party to it.

He said: “I do not wish to be subject to a disinformation campaign intended to manipulate the press. Furthermore I do not want any misunderstanding of the role of life president to be used in a way that might detract from Vodafone’s future prospects.”

Lord MacLaurin, who is due to retire from the board at the end of June, said in a statement: “On my return from a business trip to South Africa I have read the recent press comment about Vodafone with great concern.

“I want to make it clear that I and the board are totally supportive of our chief executive Arun Sarin, as he takes the company forward in changing and challenging times. Any other suggestion is completely untrue.”

Vodafone, which has been facing a battle to restore its reputation, dealt a double blow to investors last month by revealing that revenues growth was likely to slow and its assets were overvalued by as much as £28 billion.

Shares in the company traded at three-year lows in the wake of the announcement, adding to the dismay of shareholders that was only eased by news that Vodafone could sell its struggling operations in Japan.

Peter Bamford, the group’s chief marketing officer, was ousted last week as part of a “fundamental review of the group marketing function”, further stoking speculation that all was not well in the boardroom.