Activist investor Cevian Capital has taken a stake in telecoms giant Vodafone Group.
It is understood to have held talks with Voda in recent weeks about improving its performance.
Stockholm-based Cevian, one of the largest activist investors in Europe, could push the company to sell operations in its global empire, to bulk up in key business lines, or to buy back its shares from the market, Bloomberg reported. Cevian declined to comment.
Boost: US-listed shares in Vodafone rose nearly 6 per cent after news of the stake emerged
US-listed shares in Vodafone rose nearly 6 per cent after news of the stake emerged on Friday night.
The FTSE100 stalwart, headquartered in Berkshire, operates in 20 nations and has more than 300million wireless customers.
Despite a recent surge on merger rumours, its share price has plunged over the past five years, falling from more than 230p to 128p, giving the company a market value of £34billion.
City rumours last week suggested that Vodafone could be vulnerable to a predator, with private equity firms said to be circling.
In a bid to bolster defences, it is understood that Vodafone is considering an acquisition. It has held early-stage talks with Deutsche Telekom and Orange of France about a merger of their wireless towers. Voda hived off its towers as a new company listed in Germany called Vantage, where it owns around 80 per cent.
The company has also approached CK Hutchison, the Hong Kongbased parent company of mobile network Three about a merger.
Cevian has gained attention for its stake in insurer Aviva, where it has amassed a 5 per cent stake.
Vodafone declined to comment.
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