Vodafone shares have slumped three per cent today amid speculation Dutch telecoms firm KPN or another major holder might be looking to unload holdings in the mobile phone giant, dealers said.
Vodafone shares traded 4-3/4 pence lower at 152p in late-morning trade, their lowest in more than two and a half years. The stock last traded at this level in November 1998.
Following the expiry on June 12th of a lock-in agreement, Sweden's Telia earlier this week sold 80 million Vodafone shares or around half its holding to investment bank ABN Amro - sparking talk that more sales might be in the works.
But dealers said they had not seen any shares being sold in the market.
"The shares are down on the stock overhang...there is a lot of talk doing the rounds of a placing by KPN or Telia, but we have seen no sign of it yet," said one.
Debt-strapped Dutch group KPN owns 220 million shares and further stock is owned by Spanish banks, which are prevented from selling until June 29th.
KPN declined comment on market talk it was planning a sale, saying it would reveal nothing until after any sale took place.
