Vodafone appoints new Europe CE

LONDON – Vodafone Group PLC said yesterday that it has appointed Vittorio Colao as its new European chief executive in its latest move to combat tough trading conditions in the region.

Colao, who is currently chief executive at Italian media company RCS Media Group, replaces Bill Morrow who left Vodafone in July to return to the United States for family reasons. He will also assume the role of deputy chief executive when he joins Vodafone in October, replacing Julian Horn-Smith, who also stepped down recently.Morrow’s departure was one of a string of exits by high-profile executives in the first half of the year and forced the telecommunications company to deny reports of rifts at the company’s helm.Traders said Tuesday that Colao’s appointment is a positive move and noted that it could spark speculation that he will eventually replace Arun Sarin as chief executive.Sarin has come under fire from shareholders in recent months because of a lackluster share price performance and a widespread perception that Vodafone still lacks a credible strategy for further growth.The company’s shares lifted 0,4 per cent to 114,5 pence on the London Stock Exchange.”We have a number of major challenges and opportunities in our European region and I am confident that, given his background and experience, Vittorio is well equipped to succeed in this position,” Sarin said.In an attempt to counter investor criticism, the company announced in May when it reported a record net loss of 21,9 billion pounds that it would return an extra three billion pounds to shareholders, on top of the six billion pounds already pledged.It earlier announced it would restructure its operations along three business lines – Europe, emerging markets, and new businesses and innovation – after it sold its Vodafone Japan unit to a wholly owned subsidiary of Softbank Corp.in April.However, shares have continued to slump as some shareholders call for the sale of Vodafone’s stake in its minority stake in Verizon Wireless in the United States so the company can focus on growth in Europe and Asia.Sarin has said that Vodafone is satisfied with Verizon Wireless’ performance and it has no plans to sell its stake.Before joining RCS Media in 2004, Colao held a number of positions within Vodafone, as chief executive of Italy and then the Southern Europe, Middle East and Africa Region.”He was held in high regard the first time he was at Vodafone and it was seen as a loss when left,” said WestLB analyst Morten Singleton.Nampa-APHe will also assume the role of deputy chief executive when he joins Vodafone in October, replacing Julian Horn-Smith, who also stepped down recently.Morrow’s departure was one of a string of exits by high-profile executives in the first half of the year and forced the telecommunications company to deny reports of rifts at the company’s helm.Traders said Tuesday that Colao’s appointment is a positive move and noted that it could spark speculation that he will eventually replace Arun Sarin as chief executive.Sarin has come under fire from shareholders in recent months because of a lackluster share price performance and a widespread perception that Vodafone still lacks a credible strategy for further growth.The company’s shares lifted 0,4 per cent to 114,5 pence on the London Stock Exchange.”We have a number of major challenges and opportunities in our European region and I am confident that, given his background and experience, Vittorio is well equipped to succeed in this position,” Sarin said.In an attempt to counter investor criticism, the company announced in May when it reported a record net loss of 21,9 billion pounds that it would return an extra three billion pounds to shareholders, on top of the six billion pounds already pledged.It earlier announced it would restructure its operations along three business lines – Europe, emerging markets, and new businesses and innovation – after it sold its Vodafone Japan unit to a wholly owned subsidiary of Softbank Corp.in April.However, shares have continued to slump as some shareholders call for the sale of Vodafone’s stake in its minority stake in Verizon Wireless in the United States so the company can focus on growth in Europe and Asia.Sarin has said that Vodafone is satisfied with Verizon Wireless’ performance and it has no plans to sell its stake.Before joining RCS Media in 2004, Colao held a number of positions within Vodafone, as chief executive of Italy and then the Southern Europe, Middle East and Africa Region.”He was held in high regard the first time he was at Vodafone and it was seen as a loss when left,” said WestLB analyst Morten Singleton.Nampa-AP