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Vodafone Group dismisses Swedish sale rumours

The Local
The Local - [email protected] • 25 May, 2005 Updated Wed 25 May 2005 13:12 CEST

The Vodafone Group has confirmed that it has no plans to sell its Swedish operation, despite media rumours to that effect after Tuesday's announcement that the company had taken a £315 million impairment charge against the book value of Vodafone Sweden.

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Last year, Vodafone Sweden's service revenue declined by 4%, a fall which was attributed to intense competition in the region.

Wednesday's Dagens Nyheter reported that the Vodafone Group had said it "could not rule out a sale" of Vodafone Sweden after the downward valuation and wondered who might be a potential buyer.

But Ben Padovan, deputy head of group media relations at Vodafone, told The Local that the speculation was unfounded.

"We are the best owners for the Swedish business," he said, adding that fierce pricing pressure in Sweden and the company's investment in the 3G rollout had contributed to the results.

Vodafone announced in March that the company would cut 500 million kronor from its Swedish operation over the next two years, with the loss of 300 jobs. But Vodafone Sweden's public relations director Johan Holmgren is confident that the British parent company still has faith in the Swedish market.

"We believe the Vodafone group will invest further to raise competitiveness," he said.

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