Vodafone backlash over $30bn AT&T tilt

Vodafone is facing a shareholder backlash over its widely rumoured $30bn (£18bn) bid for US rival AT&T Wireless.

Investors are concerned that shareholder value will be destroyed for up to six years if Vodafone wins control of the US mobile phone company.

Karen Robertson, investment director of Standard Life, which owns just under 2 per cent of Vodafone, said: "On current analyst forecasts, the deal would be substantially earnings destructive. We remain to be convinced that the deal would add value given available information."

Ms Robertson's views echo those held by a number of other shareholders and analysts. The City is also seeking clarity over how much Vodafone will get for its 45 per cent stake in Verizon Wireless, which it must sell under US competition rules.

Competing against Vodafone for AT&T Wireless, which put itself up for sale last month, are Cingular Wireless and Nextel Communications of the US. Japan's NTT DoCoMo pulled out of the race just hours before the bid deadline of 5pm New York time on Friday. NTT DoCoMo already owns a 16 per cent stake in AT&T Wireless. Now it is out of the running, attention will focus on whether it will sell the stake.

AT&T Wireless has told bidders it will make a decision by 29 February.