Vodafone says in no hurry to sell Verizon stake

Britain's Vodafone Group Plc said on it expected strong growth rates at its US venture Verizon Wireless to be maintained in the near term and it was in no hurry to sell its 45 per cent stake.

Vodafone's chief executive officer Arun Sarin told investors at an Morgan Stanley conference in Barcelona that Verizon Wireless, its venture with Verizon Communications, was growing at 18 per cent and its value was rising.

"We're clearly conscious of the fact this company won't continue to go on at that rate into infinity but... This scenario is not changing in the next six to eight months either," Mr Sarin said, when asked whether a sale of the Verizon stake could be used to boost the dividend payout. Vodafone was in no hurry to move now, he said. "As a year or two or three goes on, who knows what opportunities the company will find itself in," he said.

Vodafone said its present dividend policy of paying out 60 per cent of earnings was also unlikely to change.

"I think we have a strong dividend. We're at 60 per cent from a low base... I think we want to stay here for a while before we change it," he said.

Vodafone was also likely to be extremely choosy when it came to acquisitions, he said.

Mr Sarin said he had read plenty of reports regarding the company's acquisitions plans, but said the group had "strong financial hurdles" on any major decisions.

He said Vodafone was "clearly interested" in increasing its stake in Polish operator Polkomtel, but the situation was in limbo because of a dispute over price.

Asked about the weakness in the group's UK business, he said the operation faced a difficult environment. "Prices are falling... We are looking (to cut) costs in sales and in marketing."

He said mobile industry trends in Europe were moving similarly to that seen in the US a few years ago.

"In the next four or five years, we'll easily triple minutes. We do have one or two difficult years to go through in the EU... We have to get through this phase to come out the other side and of course we have data and broadband and mobile advertising to help add to the revenue stream," he said.