Vodafone names new European unit CEO (AP)
9 minutes ago
LONDON - Vodafone Group PLC, the world's biggest mobile phone provider by sales, announced a series of changes to its management and organization on Tuesday, appointing a new chief executive for Europe and splitting its emerging markets business into two divisions.
Vodafone said that Michel Combes, the current chairman and chief executive of France's TDF Group, will join the company as chief executive officer, Europe region. Combes will also join the executive committee when he starts work on Oct. 1.
The company added that it will reorganize its Central Europe, Africa and Asia-Pacific region into two divisions, with Central Europe and Africa comprising one division and Asia-Pacific forming the other.
Vodafone said it would announce two new regional CEOs in "due course."
The company also said that Verizon Wireless, its joint venture with Verizon Communications Inc., will not be part of any operating region and "in light of its financial and strategic importance" will be managed by CEO Vittorio Colao and other senior managers.
Verizon Wireless announced in June that it planned to acquire Alltel Corp. for $5.9 billion plus the assumption of $22.2 billion in debt, in a deal that would make Verizon Wireless the largest wireless carrier in the United States.
Prior to that deal, Vodafone had come under pressure from some investors to abandon its Verizon Wireless stake to better drive growth in Europe and Asia as markets become more competitive and pressure grows to generate extra revenues from each customer.
The management and structural changes follow the ascension of Colao to the top job in July, replacing former CEO Arun Sarin, whose departure was marred by a significant downgrade in the company's full-year sales forecast that sent its stock plummeting.
The shares were up 2.6 percent at 139.25 pence ($2.46) on Tuesday on a broadly higher London Stock Exchange.