Vodafone in write down dilemma

Remember those tech bubble years?

By Tony Hallett, 21 May 2002 07:40

NEWS Speculation is mounting over whether Vodafone will write down the value of key assets, including its business units bought as Mannesmann and AirTouch. The mobile phone giant presents its annual results on 28 May and its board is now deciding on the correct course of action. So far City analysts narrowly predict a write down. A write down will mean the company is reassessing how much it values its assets. However, it is a tough decision for the Newbury-based firm - write down and it looks like past transactions were overvalued don't write-down and the company can look overly optimistic. Among the companies to write down billions of dollars worth of assets recently are AOL Time Warner and Universal Vivendi, while Deutsche Telekom decided not to reassess the value of its Voicestream unit in the US. At the same, Vodafone is expected to write-off the value of some assets, principally its fixed line business in Japan.

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