Vodafone Group plc issued positive financial earnings on Tuesday, and Arun Sarin announced he's
resigning as chief executive. During a conference call, Sarin, who
survived a bid to oust him in July 2006 amid profit warnings and a floundering share price, said he "felt the timing was right to hand over as the company is in a good position strategically." Net profit for the year ending March 31 was $13.3 billion, up from $10.4 billion a year earlier. Revenue was up 14% to $70.2 billion.
In his five years as chief executive, Sarin led the Newbury, U.K.-based wireless services provider through a dizzying array of dealmaking. Following a $300 billion acquisition spree by his predecessor, Chris Gent, Sarin made emerging targets the centerpiece of his growth strategy. In February 2007, Vodafone agreed to pay $11 billion to
acquire a 67% stake in Hutchison Essar Ltd., India's No. 4 wireless carrier, from Hutchison Telecom International Ltd. Sarin also expanded Vodafone in Europe through a series of smaller acquisitions and exited businesses in Japan and Switzerland. Sarin didn't always land his target. Vodafone was a bidder for AT&T Wireless, which eventually went to Cingular Wireless for $47 billion. (For an insider's look at that auction and the fierce bidding that defined it, check out this
story.)
It seems Sarin's successor Vittorio Colao will pursue a similar emerging markets strategy. On Tuesday's conference call, Sarin said Vodafone is considering deals in Africa and Asia.
- Suzanne Stevens
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