Vodafone drops deal with Greeks

Vodafone has abandoned plans to merge its operations in Greece with Wind Hellas, in a blow to the debt-laden Greek operator and throwing into doubt consolidation elsewhere in Europe.

Vittorio Colao, chief executive of Vodafone, had warned that the world’s largest operator by revenue needed to change the dynamic in Greece if it were to continue to invest in the country, but yesterday’s announcement will prove more serious for Wind in the short term.

The third-biggest Greek telecoms operator is owned by its bondholders and needed a deal to better compete in a market that has been hit by extreme pressures on consumer spending. It could still reach a network-sharing deal with Vodafone, which is due to give a trading update on Thursday.