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VODAFONE
EUROPEAN UNION
Since 1990, telecom sector of Europe has moved from a nation-based industry monopolised by public telecommunications operator to a free market system operating globally. To promote market liberalisation European Commission has played vital role through its regulatory regime. (EMCC, 2005) Since then privatisation has come up since industry is been liberalised. This resulted into entrance for new telecom company. For former monopoly firm, new telecom operators are proved to be threat for them who can steal their market. Lots of changes have been done in the market where liberalisation is introduced, privatisation is seen and multinational companies are growing. Telecom sector is proved to be very important sector for Europe. Changes like liberalisation, privatisation and MNC growing helped consumer to receive better services and at cheaper cost. As technology is changing even market is changing in Europe. (Pedersini, R. 2005)

VODAFONE
Vodafone Group Plc, London based company is one of the world's largest telecommunication company. Vodafone has wide range of product lines like communication services including mobile voice, messaging, and data and fixed broadband. More than 390 million customers are associated with Vodafone with the strength of more than 83,000 employees and operate in over 30 countries across 5 continents. Also, it has over 230,000 base station sites. Vodafone decided to divide the geographic regions Europe and Africa, Middle East and Asia Pacific (AMAP) and hold a 45% share in Verizon Wireless in the USA, this helps company to work and operate effectively.

(Vodafone, 2011)

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CORPORATE FINANCIAL PRINCIPLES

I. MERGERS & ACQUISITIONS
Strategies like mergers acquisitions takeovers, joint ventures or planned alliances are the best alternatives available nowadays for expanding any kind of businesses. But it totally depends on the momentum circumstances and the resources available with the Company before adopting these strategies. Some of the main objective of restructuring the businesses are growth, expansion and lastly total enhancements to improve the overall efficiency. Because of the Globalization, the corporate leaders think that mergers and acquisitions are the best strategies in todays market for the expansion as well as for the overall growth of the organization.
(Saxena, S, R. 2011)

a) VODAFONE AIRTOUCH Merger - 1999 Vodafone Company proposed $62million merger to the San-Francisco based Communication Company - AirTouch Inc. in the year 1999. The shareholders of the AirTouch Company approved this proposal and they received 0.5 of a Vodafone American depository receipt and $9 cash for each AirTouch share having value of $97/share under the terms of the deal announced in the month of January. This deal was approved successfully by European Regulators, Vodafone shareholders and the U.S Antitrust officials. (Douglass, E. 1999)

b) VODAFONE MANNESMANN AG Merger - 2000 The biggest venture for the worlds most revenue making Company Vodafone was made in the year 2007. In this venture Vodafone acquired 52% stake in the reputed Indian telecom Company Hutchison Essar Limited. This deal was made via Hong Kong based Hutchison Telecommunication International Ltd (HTIL) and it is considered as the biggest deal made ever in the Indian Telecom Market.
(Schulten, T. 2000) c) ACQUISITION OF HUTCH (India) 2007 In the year 2007, the world's largest telecom company in terms of revenue, Vodafone Plc (Vodafone) made a major venture into the Indian telecom market by acquiring 52 percent stake in the Indian telecom company - Hutchison Essar Ltd (Hutchison Essar), through a deal with the Hong Kong-based Hutchison Telecommunication International Ltd. (HTIL). It was the biggest ever deal made in the Indian telecom market.

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II. CAPITAL STRUCTURE

(INDIGO EQUITY RESEARCH. 2011)

With clear priorities for surplus capital Vodafone designed 2 strategies: keep on investing in existing business To look more opportunity on mobile data, enterprise and broadband. Finally always to be alert and keep on acquiring new spectrum and expanding network. (Vodafone, 2009)

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III. DIVIDEND POLICY

The main objective of Vodafone Company is to improve on the returns provided to the shareholders by mainly increasing the dividends. In the month of November, 2008, the Board of Vodafone incorporated the progressive dividend policy in which the dividend increase rate reflects the basic trading and cash performance of the Company. Later in the year 2010, May, the Board declared that it is targeting for at least 7% growth of dividend/share for each year for the duration of upcoming three financial years, that is, up to 31st March, 2013. (Vodafone, 2010)
Dividend history Pence per ordinary share Year ended 31 March Interim Final Total Special dividend Growth (excluding Special dividend) %

2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999

3.05 2.85 2.66 2.57 2.49 2.35 2.2 1.91 0.9535 0.7946 0.7224 0.688 0.655 1.2720(1) 6.05 5.65 5.2 5.02 4.41 3.87 2.16 1.078 0.8983 0.7497 0.714 0.68 8.90 8.31 7.77 7.51 6.76 6.07 4.07 2.0315 1.6929 1.4721 1.402 1.335 1.272

4.00(2) 7.1 7 3.5 11.1 11.4 49.14 100 20 14.99 5 5.01 4.95 -

(Vodafone. 2012)

Conclusion

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(Vodafone, 2010)

Vodafone, who has a good payout history of dividend and one of the largest telecom operators in the world, has creatively spread its brand name and business among many countries of the world. Here winner will be those companies who understand the need of the consumer rather just focusing on just new technology until one is ruling present technology. 2012 proved to be challenging year for European market. Companies are losing hope due to crisis but company like Vodafone has paid record dividend. It is been concluded it is shinning just because of its strong presence in faster-growing markets. European Telecom companies are spending much on phones and network, double than what they spent in the year 2010. So running in a race is also important and not to disqualify is also necessary. Vodafone is running in a race and winning also. But still this is not an end, long way to go. Europe Crisis are still on head, companies are still shivering, outlook is not positive and no government strategy is completely working out. Following charts shows the figures of Vodafone for Q1 2012.

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(Financial Analysis. 2012)

REFERENCES:

EMCC (2005). EMCC dossier on the European telecoms sector [Online]. Available at: http://www.eurofound.europa.eu/emcc/content/source/eu05008a.htm?p1=emcc_dossier&p2=null. [Accessed: 25th May 2012]

Pedersini, R. (2005). Industrial relations in the public utilities [Online]. Available at: http://www.eurofound.europa.eu/eiro/2005/02/study/tn0502101s.htm. [Accessed: 25th May 2012]

Vodafone (2011). Vodafone Group Factsheet Plc [Online]. Available at: http://www.vodafone.com/content/dam/vodafone/investors/factsheet/group_factsheet.pdf. [Accessed: 25th May 2012]. Saxena, S, R. (2011). Mergers And Acquisitions : Vodafone Controversy [Online]. Available at: http://www.lawyersclubindia.com/articles/-Mergers-And-Acquisitions-Vodafone-Controversy--3728.asp. [Accessed: 25th May 2012]. Douglass, E. (1999). AirTouch-Vodafone Merger [Online]. Available at: http://articles.latimes.com/1999/may/28/business/fi-41841. [Accessed: 26th May 2012]. Schulten, T. (2000). Mannesmann agrees on friendly takeover by Vodafone [Online]. Available at: http://www.eurofound.europa.eu/eiro/2000/03/inbrief/de0003248n.htm. [Accessed: 25th May 2012]. INDIGO EQUITY RESEARCH. (2011). Capital Structure [Online]. Available at: http://www.indigo-equity-research.com/sample/overview/Vodafone_Overview.pdf. [Accessed: 26th May 2012]. Vodafone (2010). Strategy update - November 2010[Online]. Available at: http://www.vodafone.com/content/index/investors/company_information/strategy.html. [Accessed: 25th May 2012]. Vodafone (2009). Strategic focus in 2009 [Online]. Available at: http://www.vodafone.com/content/index/investors/company_information/strategy/archived_strategystate ments.html. [Accessed: 25th May 2012]. Vodafone (2009). Strategic focus in 2009 [Online]. Available at: http://www.vodafone.com/content/index/investors/company_information/strategy/archived_strategystate ments.html. [Accessed: 25th May 2012]. Vodafone (2010). Strategic focus in 2009 [Online]. Available at: http://www.vodafone.com/content/index/investors/company_information/strategy/archived_strategystate ments.html. [Accessed: 25th May 2012].

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Vodafone. (2012). Dividends [Online]. Available at: http://www.vodafone.com/content/index/investors/share_debt/ordinary_shareholders/ dividends.html. [Accessed: 26th May 2012]. Vodafone (2010). Vodafone Group Plc Strategy Update [Online]. Available at: http://www.vodafone.com/content/dam/vodafone/investors/strategy_update_november_2010.pdf. [Accessed: 25th May 2012]. Financial Analysis. (2012). Vodafone 2012 1Q financial analysis [Online]. Available at: http://www.finanalys.com/vodafone-2012-1q-financial-analysis/. [Accessed: 26th May 2012].

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