The worlds largest mobile phone company, Vodafone, has launched a campaign to buy back £1billion of it’s shares following an adverse reaction in the stock market yesterday, to the companies warning that profits would be at the bottom end of forecasts.
The warning to shareholders saw Vodafone prices crash by 14% to 129p. The Vodafone board reacted quickly by announcing the share buyback scheme, “with immediate effect”.
“This action reflects the board’s belief that the share price significantly undervalues Vodafone,” it said.
The warning on profits was prompted by falling sales in the Spanish market in particular, but the UK market also shows serious signs of weakening.
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