The share price of British mobile phone giant Vodafone, which has agreed to buy Eircell from Eircom, fell through 200 pence sterling for the first time for more than two years today. Eircom can walk away from the Eircell deal if the Vodafone share price falls below 220p. Today's fall, to 198p sterling, was due to concern over the mobile sector in general and the group's disposals strategy, dealers said.
Concerns emerged about the group's vital sale of its Italian telecoms business Infostrada for eleven billion euros. Vodafone admitted on Friday that Italian competition concerns could scupper the deal it unveiled last October to sell Infostrada to Italian energy group Enel. The deal is critical to Vodafone because it plans to use the funds raised to pay off large debts run up as a result of shelling out for third-generation mobile telephony licences and assets.
