Vodafone to buy back shares

MOBILE phone retailer Vodafone has announced a £1 billion share buyback programme after its share price plunged following a trading update.

The group's shares fell by more than 13 per cent yesterday after it said its full-year revenues would be at the lower end of expectations. And today it responded by announcing the scheme, saying its current share price "undervalues" the company.

In a statement, Vodafone said: "The board has considered the market reaction to the group's interim management statement and has decided to introduce a £1bn share repurchase programme with immediate effect.

"This reflects the board's belief that the share price significantly undervalues Vodafone."

The buyback will need shareholder approval at the annual general meeting on July 29.