Vodafone Group PLC announced on Thursday that it would split into three new business units in a restructuring plan aimed at keeping its position as the world's leading mobile telecommunications group.
The move, which is aimed at cutting costs, comes amid shareholder unease at lower growth prospects for the group.
The three divisions will comprise Europe; New Businesses and Innovation; and Central Europe, Middle East, Asia Pacific and Affiliates, Vodafone said in an official statement to the London Stock Exchange.
Investors applauded the reorganization, sending the group's share price 0.61 percent higher to ?124.25 at close.
"This new structure is an important step forward for the group as it is aligned with our evolving strategy and addresses the different priorities across the group," Vodafone chief executive Arun Sarin said in the release.
"It will enable us to continue to outperform our competitors as the changes deliver a streamlined and simple structure with a clear focus," he added.
Vodafone said that Bill Morrow, currently president of the business in Japan, will head up its new European unit.
Paul Donovan, the head of OVS (Other Vodafone Subsidiaries), is to become chief executive of Central Europe, Middle East, Asia Pacific and Affiliates.
The other new unit, New Businesses and Innovation, will be run by Thomas Geitner, currently Vodafone's chief technology officer.
Faced with falling growth rates in its core western European market and an alleged boardroom revolt, Sarin has come under pressure from Vodafone shareholders to shake up the group's international strategy.
Last month, Japanese Internet and telecoms group Softbank Corp agreed to buy Vodafone's struggling Japanese subsidiary, Vodafone KK, for ?8.9 billion (US$15.6 billion).
At the same time, Sarin stressed there were no current plans to exit Vodafone's operations in the US. There has been speculation that Vodafone was looking to also sell its 45-percent stake in US mobile operator Verizon Wireless, again in response to growing shareholder pressure.
Industry sources meanwhile said on Thursday that Vodafone was considering expanding further into the fixed-line sector, including a possible bid for an established operator in Western Europe.
AFX News, citing the sources, said Vodafone was training its sights on the maturer mobile phone markets of the UK, Spain and Italy.
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