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Vodafone sells China Mobile stake for $6.6 bn

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CIOL Bureau
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LONDON, UK: Vodafone, the world's largest mobile operator by revenue, announced on Tuesday the sale of its 3.2 per cent stake in China Mobile for about $6.6 billion.

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Vodafone said it would return about 70 per cent of the net proceeds, after tax and transaction costs, to shareholders via a share buyback. The remainder will be used to reduce group debt.

Vodafone said Morgan Stanley, UBS and Goldman Sachs were managing the placing.

The sale is part of Vodafone's move to dispose of minority stakes following complaints from investors and analysts who believe holding assets it does not control has damaged its value in recent years.

It has said its minority holdings are not considered essential and it will focus on its core markets in Europe, Africa and India.

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