Vodafone shares have fallen amid concerns it is set to get involved in a $35 billion bid battle to buy US mobile phone company AT&T Wireless.
At 8:12 a.m. this morning, Vodafone shares were down 2.6 per cent at 132-1/2 pence, the weakest stock in the FTSE 100 share index.
Dealers said although a deal for AT&T Wireless could be a good strategic fit for Vodafone, it would dilute earnings for several years.
Yesterday, AT&T Wireless asked rival bidders Vodafone and Cingular Wireless to sweeten offers worth about $35 billion, sources familiar with talks said. They said pressure was mounting for a fast deal.
Analysts at Smith Barney, the research arm of Citigroup, downgraded their rating on Vodafone to "hold" from "buy".
