Vodafone shares fall to fresh lows

Shares in telecoms giant Vodafone have slid to four-year lows, after disappointing results from a US-based joint venture spooked investors.

Vodafone stock closed down 4.75p at 107p, the lowest closing level since March 1998.

The market in its current state is not willing to give Vodafone the benefit of the doubt

London share dealer

The shares hit 106.5p earlier on Tuesday.

The slide followed the release of data showing that customer growth at a business joint-owned with Verizon hit 186,000 in the first three months of the year, well short of analysts' predictions of a 300,000 figure.

The data unnerved investors awaiting the release on Thursday of Vodafone's latest trading statement.

Sentiment for telecoms stocks had already been soured by poor figures from handset makers Nokia and Ericsson.

"The market in its current state is not willing to give Vodafone the benefit of the doubt," one London dealer said.

The firm, Europe's largest mobile phone firm, still ranks as the fourth largest company listed in London at Tuesday's closing price.

Rise and fall

Vodafone stock briefly topped 400p in March 2000, valuing the firm at about $400bn, as shares rode the telecoms boom, and the company pulled off the daring takeover of German rival Mannesmann.

But the bursting of the dot.com bubble undermined faith in shares in tech-related firms, and left raised questions over sums paid by Vodafone in a late-1990s acquisition spree.

Analysts have predicted Vodafone will announce write downs of £2bn-10bn on its investments when it reports fourth-quarter results on 28 May .

Disappointment in new mobile technologies, and high levels of competition in the market, have further undermined sentiment in the firm.