PRESSURE on Vodafone to leave the US intensified yesterday as investors called for an end to backbiting on the mobile phone giant’s board.

Verizon Communications, Vodafone’s partner in the US, announced in a statement that it was “focused on working to acquire from Vodafone” its 45 per cent stake in Verizon Wireless.

The renewed pressure from Verizon, which is itself under pressure to react to the £45 billion tie-up of its rivals AT&T and BellSouth, follows persistent calls from some leading UK investors for Vodafone to sell its stake and return the proceeds of up to £30 billion to shareholders.

One shareholder said the necessity for Verizon to do a deal had come at a “fortuitous” time for Vodafone, which has faced intense criticism over its poor share price performance.

“If they (Vodafone) can get a good price then it would be sensible for them to exit the US market,” he said.

Vodafone said its position of keeping the asset under constant review remained unchanged.

Investors acknowledged that Vodafone’s plans to sell a majority stake in its failing Japanese division had relieved short-term pressure on Arun Sarin, its chief executive. But they said they still had concerns about management, poor communication and increasing backbiting.

Vodafone’s poor share price performance has triggered a row beween suppporters of Mr Sarin and his critics, and has led to a series of allegations and counter-allegations being put forward by the rival camps.

David Cumming, head of UK equities at Standard Life Investment, said the behaviour at the group was “a bit like the court of the Borgias on a bad day and they need to do something about that”.

He added “(Vodafone’s) communication of outlook and strategy hasn’t inspired faith or confidence . . . The strategy we see at the moment keeps changing and . . . there are still issues in terms of leadership which have to be addressed. I don’t think the Japanese move changes that.”

It also emerged yesterday that several hedge funds are nursing heavy losses after being caught out by Vodafone’s sudden decision to leave Japan.

The sharp jump in Vodafone shares since the mobile operator announced plans to pull out of the country, through a deal with SoftBank, the internet conglomerate, is estimated to have cost a small group of specialist hedge funds more than £200 million.

The estimate is supported by official data from CrestCo, the electronic settlement firm which handles dealings in the vast majority of Vodafone shares.

CrestCo told The Times last night that specialist speculators who seek to profit from share price slumps by short-selling shares they do not own in the hope of buying them back later at a profit had borrowed more than 1.3 billion shares on March 1 alone in order to cover bets that the group’s shares would continue to slide. By last night's close, those bets were £200 million under water.

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