Vodafone is mulling the divestiture of its minority stakes in operators in Poland, China and France in order to appease shareholders, senior bankers have said. Sources at Reuters believe Vodafone is likely to sell its near 25 percent holding in Poland’s Polkomtel rather than buying-out the state-controlled Polish companies that own the rest of the business (and which recently announced they were searching for a buyer). Other minority assets reportedly under review include Vodafone’s 3.2 percent holding in China Mobile – considered an easier asset to sell – and its 44 percent holding in France’s SFR. Senior bankers say Vodafone is not under pressure to sell assets to shore up its balance sheet or improve cash-flow – but rather to repair its reputation with investors. “The company has acquired a reputation as a poor transactor. They need to show investors that they are acting in a disciplined manner,” said one telecoms banker. “Investors are anxious about Vodafone’s deals that were done five to seven years ago.”

The review of strategy follows complaints from investors who believe Vodafone’s position of owning assets it does not control – as is the case in Poland, China and France – has produced a discount between the market value of Vodafone shares and sum of the parts. One key Vodafone shareholder – the Ontario Teachers’ Pension Plan – recently called for a board shake-up at the UK-based group, accusing it of “strategic weaknesses” and having a “disastrous” acquisitions record. According to Reuters, a disposal of small minority stakes could raise well over £10 billion (US$15.57 billion) which could be used to pay off debt, any tax bills, buy spectrum and increase share buybacks. Sources note that the value of Vodafone’s China Mobile stake has almost doubled to US$7 billion since it was first acquired.