14 DAY TRIAL // Vodafone is in danger of ending up broken in many pieces due to the investor's dissatisfaction with the profits of their shares. The influential American investor group Glass Lewis has publicly supported proposals from another shareholder.
Glass Lewis is one of the two largest corporate-governance advisory groups in the US. While American investors hold 30 pct of Vodafone's share, this group holds 80 pct of institutions which are subscribed to services coming from the mobile company.
The activist investor Efficient Capital Structures (ESC) is actually the one that has made the proposals which stand at the grounds of the general conflict. They have called on Vodafone to return almost 40 billion stg to shareholders. Moreover, it also asks the company to modify its balance sheet and send 45 pct to Verizon Wirelesss, the American telecom service company.
The Efficient Capital Structures considers that Vodafone currently stands at a share price under the average level of performance, which might be overall harmful for the company. Glass Lewis has already accepted ESC's ideas after discussing them earlier this week. Moreover, just as this group has decided to accept the new plans, even more might do the same in the future.
Recent debates between the shareholders have managed to arise and be taken into consideration. As a result, they will be put to shareholder vote at Vodafone's July 24 annual general meeting. Still, the company has rejected these calls until now, which might have serious consequences if even more shareholders will accept them.
Until the date when the debates will be put to voting, Efficient Capital Structures is expected to make considerable moves to lure even more shareholders on its side. Glass Lewis, their ally has already increased pressure in the company by trying to convince shareholders to reject Vodafone's remuneration report.