Vodafone shares hit by accounting rumours

Mobile phone giant Vodafone has rubbished market concerns about its accounts, after ripples from US book-keeping scandals tested…

Mobile phone giant Vodafone has rubbished market concerns about its accounts, after ripples from US book-keeping scandals tested investor nerves and sent its shares to a four-and-a-half year low.

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I can categorically confirm that there is no basis for any of these rumours
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Vodafone spokesman

A spokesman for Vodafone said today the rumours were "completely unfounded".

"I can categorically confirm that there is no basis for any of these rumours," he added.

Shares in Europe's biggest mobile phone group fell over five per cent on what dealers said were general accounting concerns plaguing the telecoms industry. Dealers were unable to pinpoint any particular issue regarding the company's accounts.

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Analysts also dismissed the market concerns about Vodafone's accounting practices, saying hedge fund speculation was driving the share price lower. "It's simply an excuse to knock the shares; there's no substance to the rumours," said WestLB Panmure analyst Mr John Tysoe.

Vodafone's shares were last down 5.5 per cent at 81-3/4p, having earlier hit a low of 79-3/4p - its lowest level since December 1997.