Vodafone appoints finance head Margherita Della Valle as permanent chief executive

Vodafone has appointed Margherita Della Valle as its new permanent chief executive to oversee the turnround of the British telecoms group.

Della Valle, who was finance chief for the FTSE 100 company, has served as interim chief executive since January, when she took over from Nick Read.

The appointment comes as Vodafone faces questions over its long-term strategy in a market that could finally see further consolidation across Europe.

A number of rival telecoms groups have become shareholders in Vodafone, such as Liberty Global and French telecoms tycoon Xavier Niel, which alerted analysts to the potential for M&A involving the company. United Arab Emirates-based telecoms group e& this week increased its stake to 14.6 per cent.

Vodafone is already in talks to merge its UK operations with Three UK, while analysts expect the company to consider options for its German business.

Della Valle has worked for Vodafone in Italy and the UK for almost 30 years. People familiar with the company’s thinking said she had won over the board with her vision for sweeping changes to the group. Initial views on a longer-term strategy to return Vodafone to growth and simplify the business are expected at its full-year results later this month.

Della Valle said: “To realise our potential Vodafone needs to change. We know we can do better. My focus will be to improve the service for our customers, simplify our business and grow.”

Della Valle will also continue as chief financial officer until an external search for a replacement. She will be the eighth female chief executive in the FTSE 100.

Vodafone chair Jean-François van Boxmeer said the appointment followed “a rigorous internal and external search”.

He said: “Margherita has a strong track record during her long career at Vodafone in marketing, operational, commercial and financial positions. Over the last few months, the board and I have been impressed with her pace and decisiveness to begin the necessary transformation of Vodafone.”

Shares in Vodafone were up 1 per cent in afternoon trading on Thursday.