Vodafone has announced the completion of its acquisition of a total of 4,061,948 shares in Airtel Movil, the Spanish mobile operator, in a share swap arrangement with existing shareholders worth more than £7 billion.
Under terms of the new deal Vodafone will issue 3,097,446,624 new listed Vodafone shares to be delivered to transferring Airtel shareholders. Following settlement of this transaction, there will be approximately 64.5 billion Vodafone ordinary shares outstanding.
The Vodafone outlay increases its stake in Spain's second-largest mobile business from almost 22pc to nearly 74pc, and it could end up with all the equity if BT decides to sell.
This follows only a week after Eircom announced that Vodafone is to acquire eircom's mobile communications business, eircell for a total of 4.5 billion euros.
Six months ago both BT and Vodafone were battling for control of Airtel but settled for a compromise involving Vodafone taking a 55pc holding, with BT getting the 45pc minority.
Vodafone says it is now up to BT to buy shares to raise its stake from a current 17.8pc. BT said it will look at the share-buying option "under the terms of the agreement" but analysts say that BT, with its £30 billion debt mountain, will drop the option and sell out to Vodafone to raise cash.
Commenting on the transaction, Julian Horn Smith, Chief Executive of Vodafone Europe, said: "The increase of our holding in Airtel represents an important step in our global strategy, and this transaction will bring us closer to consolidating our position in the rapidly growing Spanish mobile market"
Meanwhile, an American subsidiary of Vodafone has been sued by a surgeon who claims he contracted a brain tumour from using his mobile phone.
The action, started in Baltimore, Maryland, by Dr Christopher Newman, is expected to trigger a series of compensation cases against Verizon Wireless, in which Vodafone holds a 45 per cent stake.
"The firm's shares fell by 4.5 pence to 233 pence on the London Stock Exchange last week. However, some traders believe that the drop may also reflect slack trading during the Christmas holiday season.