It was only two weeks ago that Sir John Bond, Vodafone’s chairman, left the door open for the mobile phone group to reduce its stake in Verizon Wireless, the US mobile group.

That door was firmly closed today though, when Vodafone said that it would not exercise a “put” option which gave it the right to sell about a quarter of its 45 per cent stake.

Vodafone said that Verizon Wireless’s growth prospects justified its position in the group.

Some shareholders are less certain. Only last month management faced a call to spin off the stake amid concerns that its value, thought to be about $50 billion, is not properly reflected in Vodafone’s share price. Verizon is also still a couple of years from paying dividends.

Today’s decision may dampen hopes that Vodafone will detach itself from it Verizon Wireless holding. However to have reduced its holding through a “put” option would simply have raised speculation of a complete sell-out.

Vodafone appears committed to its Verizon Wireless stake, for now at least. That attachment will last as long, we can assume, as it takes a potential buyer to offer a sufficient premium to the value the company places on the stake.

Bypassing the “put” option gives Vodafone the flexibility to negotiate a deal on its own terms. While some shareholders may be impatient for action, their longer term interests may well be better served with this decision.

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