LONDON (AFX) - Some of Vodafone Group PLC's top shareholders have come out in support of the company, arguing that management should be allowed to get on with implementing its new strategy as the Association of British Insurers (ABI) meets to weigh its concerns about the telecommunications group.
One fund manager at a top ten shareholder which met Vodafone officials last week, and will attend today's ABI member meeting, said: 'We believe what the company and the management need to do is to execute its new strategy as effectively as possible and we don't think a short-term disruption of the management at this point will be beneficial.
'In fact if you are implementing a strategy as important as this, the last thing you would want is a management change and it is best that the management are given an opportunity to deliver.'
He added that key points raised during its own meeting with Vodafone were about the company implementing its revised five point strategy and how effectively and quickly the company would be able to deliver this.
Another top ten Vodafone shareholder added: 'We don't feel strongly enough about these issues to be one of the shareholders being pro-active against the management.'
UK fund manager Hermes, the ninth largest shareholder according to Thomson ONE data, has also denied weekend reports that it is leading investors against the company. It added though, that like all investors, it had some concerns and is looking to engage with the company to achieve change.
Over the past couple of weeks, some of Vodafone's shareholders have raised concerns over the ability of management to deliver the new strategy. Some investors have also been unhappy with what they see as Vodafone's divisive boardroom and excessive management pay.
Last month, as the company unveiled the biggest annual loss in British corporate history, Vodafone chief executive Arun Sarin warned the company needed to cut costs to counter slowing growth in its core markets and prepare itself for a push into lower margin activities.
The ABI meeting today reportedly represents 15 of the UK's top investment groups, including many Vodafone investors. The ABI's members overall represent about a sixth of all investments traded on the London Stock Exchange. -By Raji Menon: 44-(0)207 422 4954; raji.menon@afxnews.com raj/jad/joy COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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