Vodafone Won't Use Sale Proceeds for Major Acquisitions

Vodafone plans to turn $84 billion, the bulk of the proceeds from the sale of its biggest asset, over to shareholders rather than go on a major shopping spree, raising the prospect that the slimmed-down company could itself become an acquisition target.

Leftover cash—about $30 billion after taxes—will help Vodafone fund a three-year, £6 billion ($9.3 billion) program to speed up its deployment of high-speed wireless and fixed networks, with the rest left on the balance sheet to reduce Vodafone's net debt, which stood at $38.78 billion on June 30. Smaller acquisitions might be considered for some fixed-line operators, but the company said they aren't necessary.