Vodafone may be forced to slash the value of its recent acquisitions by billions of dollars. The company’s chairman, Sir Chris Gent, is expected to acknowledge that the company spent too much during the technology boom.
Vodafone has already reduced the value of its recently acquired assets by $6.5 billion, in its half-year results last November. The company says the potential future earnings from its acquisitions are not worth the price paid at the time of the deal
Vodafone is not the only operator to have paid too high a price. Japan’s NTT DoCoMo cut $10 billion off the value of its overseas investments last week, triggering fears that Vodafone will have to follow suit. While the write-down will not hurt Vodafone’s operational performance, it could lead to record bottom-line losses.