VODAFONE, THE world's largest mobile-phone company, will become more efficient and adjust its business to clients' needs to offset the effect of slowing economic growth, according to incoming chief executive Vittorio Colao.

"Economic challenges won't slow us down," Mr Colao, on his first day on the job, told reporters after the company's agm in London. The company may potentially react by "adjusting prices" or introducing "less fancy handsets" in some markets, he said.

Asked about potential job cuts, he said the company aimed to be more efficient and was studying at a range of measures to achieve its target. "That doesn't necessarily mean we'll cut jobs."

His comments come after Vodafone earlier this month scaled back its sales forecast as slowing economic growth hurt revenue from phone calls and handsets. The stock dropped 14 per cent in London trading that day, the most in 20 years.

Mr Colao also said he would continue Vodafone's push into emerging markets. Acquisitions over the past two years in Turkey and India, the fastest-growing major wireless market, helped the company make up for slower growth in Europe.

Vodafone gained 3.1 per cent to close at 133.95 pence in London yesterday. The stock has lost 29 per cent this year.

More than 99 per cent of Vodafone's shareholders approved a £1 billion share buyback at the agm yesterday. The buyback is the biggest since Vodafone spent £6.5 billion pounds repurchasing shares in the 12 months through March 2006, according to Bloomberg Data.

Former chief executive Arun Sarin told shareholders that the "decision to leave the company is entirely my own". He said he wanted to spend more time with his family and would probably return to California.

He faced pressure to deliver a new strategy after Vodafone lost £21.9 billion, the largest annual loss in European history, in the year ended March 2006. - (Reuters)