Vodafone falls on potential Indian tax

Telecoms giant Vodafone is in a delicate situation regarding its Indian business. The company says that it will urgently take action to prevent the Indian government from imposing a tax of more than two billion dollars over the 2007 purchase of local company Hutchison Whampoa.

India is trying to make changes to its tax code that would be effective retroactively.

The change would imply a tax obligation for an operation between Vodafone and Hutchinson that took place at a time when the tax legislation was not in place, a Vodafone spokesman told Dow Jones Newswires.

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Shares were down 0.66% at 173.3p by 14:33 in London on Friday.

M.G.