XAVIER NIEL BECOMES VODAFONE'S LARGEST SHAREHOLDER AFTER BUYING E& STAKE

French telecom billionaire Xavier Niel is set to become Vodafone's largest shareholder after agreeing to buy a 16.2% stake from the United Arab Emirates-based telecom group e&, according to Reuters. The deal is worth about $6 billion, or £4.4 billion, and gives Niel a major position in one of Europe's largest telecom groups.

Reuters reported that Niel is buying the stake at a 13% premium to Vodafone's market value. The Wall Street Journal reported that the shares were purchased through Niel's investment vehicle Vega and that e& will also receive Vodafone's final dividend, bringing total consideration to 112.5 pence per share.

The transaction replaces one major strategic shareholder with another. Reuters reported that e& is selling its Vodafone holding to refocus on its core telecom operations after constrained earnings growth. The Wall Street Journal reported that e& board representative Hatem Dowidar has resigned from Vodafone's board following the transaction.

Niel is best known as the founder of French telecom group Iliad and has built a wider telecom portfolio across Europe and Latin America. Reuters described him as an investor known for pushing consolidation in telecom markets. Analysts cited by Reuters said his arrival could increase pressure on Vodafone to accelerate cost-cutting, strengthen cash flow and pursue strategic changes.

Vodafone has already been restructuring under Chief Executive Margherita Della Valle. Reuters reported that the company has exited Spain and Italy and formed Britain's largest mobile operator through a merger with Three UK. Those moves were part of a wider effort to simplify Vodafone's portfolio and improve performance after years of investor pressure.

Niel praised Vodafone's assets and global reach, according to Reuters, and described the company as a strong investment prospect. The Wall Street Journal reported that Vega said it does not intend to make a full takeover offer, though analysts said the size of the stake could still give Niel significant influence over Vodafone's future direction.

The market reacted positively to the ownership change. Reuters reported that Vodafone shares rose after the announcement, helping lift telecom shares and support a modest gain in the FTSE 100 on Friday. The Wall Street Journal reported that Vodafone shares surged by as much as 14% in early London trading.

The deal remains subject to regulatory approval, according to Reuters. Regulators will be watching the ownership change because Vodafone remains a major telecom operator with operations across multiple markets, and because large strategic holdings can affect corporate governance, competition strategy and national telecom infrastructure debates.

The immediate question is how active Niel becomes as Vodafone's largest shareholder. If he remains a financial investor, the change may mainly stabilize the shareholder base. If he pushes for strategic action, Vodafone could face new pressure on costs, asset sales, consolidation or further restructuring.

Fact-check date: 10 July 2026
Article type: News
Sources: Reuters, Wall Street Journal, The Guardian, Business Standard, Vodafone and e& transaction reporting