VOD Vodafone Group Plc

By Adria Calatayud

BARCELONA--Vodafone Group PLC's (VOD.LN) Chief Executive Nick Read said Wednesday that it is important for the company to maintain control of its European towers, as the review of those assets isn't aimed at deleveraging.

The British telecommunications giant said Tuesday it would separate its tower assets into a differentiated legal entity within the group and review options, as it set out plans to reduce 1.2 billion euros ($1.35 billion) in operating expenses over three years.

"I think it's important to maintain strategic control. These are important assets to us," Mr. Read said at a Morgan Stanley conference in Barcelona, Spain.

The company's CEO said reducing its debt load wasn't a big factor in the decision to separate its tower assets.

"If we get a fantastic value for shareholders, we will do that, but [the motive] is not deleveraging," Mr. Read said.

The review will take six to nine months, Mr. Read said.

Mr. Read said Vodafone's experience in the U.K. shows that active sharing of tower assets doesn't work in big cities, as data management can be complex if competing operators have different demands. However, the company is open to passive sharing across Europe, the CEO said.

Vodafone owns around 58,000 communication towers in Europe.

Write to Adria Calatayud at adria.calatayudvaello@dowjones.com

(END) Dow Jones Newswires

November 14, 2018 13:14 ET (18:14 GMT)

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