Vodafone today defeated plans by rebel shareholders seeking a radical overhaul of the company.
Activist shareholder group Efficient Capital Structures (ECS), which includes former Marconi finance director John Mayo, were calling for the mobile phone company to spin off its 45% stake in US firm Verizon Wireless and take on an extra £34 billion in debt to return more cash to investors.
The group used a clause in the Companies Act to get its proposals onto the agenda at today's annual meeting but its resolutions were comfortably defeated by proxy voters.
More than 93% of shareholders voted against ECS's plans to spin off or issue tracking shares in Verizon Wireless, while nearly 95% came down against the bond issue.
Vodafone chairman Sir John Bond criticised the 'extraordinary' level of debt which Vodafone would have to take on under the bond issue, which would increase the firm's interest payments by around £2 billion a year and limit the board's flexibility.
Vodafone shares closed down almost 3% at 156p in London.
