Vodafone Holders Reject Verizon Spinoff

Vodafone Group PLC shareholders Tuesday rejected an activist investor’s call to spin off the cell phone operator’s stake in U.S. company Verizon Wireless.

The shareholders voted by a more-than-95 percent margin to support Vodafone’s U.S. business strategy, Vodafone said.

Vodafone has a 45 percent stake in Verizon Wireless. Verizon Communications Inc. owns the remaining 55 percent of the Basking Ridge, N.J., company.

Efficient Capital Structures had wanted Vodafone to sell its stake or issue a tracking stock for it.

A tracking stock is a security issued by a parent company to monitor the results of one of its subsidiaries or lines of business. The financial results of the subsidiary or line of business are attributed to the tracking stock.

ECS also wanted Vodafone to release $70 billion to shareholders through the issuance of bonds — a resolution shareholders also rejected, Vodafone said.

Vodafone Chairman John Bond had strongly urged shareholders to vote against ECS’ resolutions.