VOD's $2B Counter-Punch

11:20 AM -- Vodafone Group plc (NYSE: VOD) left investors in no doubt about its feelings today by announcing a knee-jerk £1 billion (US$2 billion) stock repurchase programme.

The company Tuesday unveiled first-quarter key performance indicators (KPIs) that triggered a widespread sale of Vodafone shares, sending the stock down 14 percent. (See Vodafone Wobbles on Outlook.)

That prompted today's response from the wireless giant, which announced that its board had "considered the market reaction to the Group's Interim Management Statement... and has decided to introduce a £1 billion share repurchase programme with immediate effect. This action reflects the Board's belief that the share price significantly undervalues Vodafone."

The chastisement wasn't enough to reverse Tuesday's share price fall -- Vodafone's stock is up by just 1 pence, about 0.8%, to 130 pence on the London Stock Exchange .

— Ray Le Maistre, International News Editor, Light Reading

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