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Verizon's bid to buy Vodafone out: sentence of death for Sarin?

Commentators have focused on the apparent "old guard, new team" battle inside Vodafone, as cricket supremo McLaurin and former Voda boss Chris Gent distance themselves from the company. In fact, none of that is the real threat to boss Arun Sarin; rather, he should fear the loss of the American holdings.

The "informal" offer by Verizon to buy out the 45% stake it has in Verizon Wireless is something Vodafone can do nothing about. It's written into the deal that either party can force that transaction whenever they like. Vodafone can't hang on to the share if Verizon wants it, and Verizon can't stop Vodafone dumping the shares on them if they choose to do so.

What it means, say insiders, is that the whole purpose of appointing Arun as CEO in the first place, is gone. That purpose is: "To deal with the Americans."

"The trouble is, the sort of attitude that goes down really well with Wall Street analysts, is pure poison when dealing with City financiers in London," commented one insider.

Sarin is seen as "one of us" by American managers, and he speaks their language: a hard-line, no bull approach which tells them "I know what I'm talking about!" - an approach which deeply offends the UK's analyst community, who expect diplomacy from public company board members - even if in fact, the board member knows the subject well, and the analyst is way off message.

Sources reckon Sarin has bought himself six months with his recent round of sackings; but if he can't keep a finger in the fixed line pie and also loses his American holdings, a lot of people will see him as a liability to Vodafone at a time when it needs all the friends it can get.

  Tags: Vodafone, McLaurin