Vodafone is in talks with US company Verizon Communications over the sale of its 45 per cent stake in its joint venture, Verizon Wireless.
Should the deal take place, it will be one of the largest corporate transactions of all time and would provide a large boost for the UK telecoms firm. However, it means Vodafone would be without a profitable non-European partnership.
Early reports suggested that Verizon was looking to pick up Vodafone's stake in Verizon Wireless for around $100 billion, but latest predictions claim it may have to pay closer to $130 billion for the stake.
Vodafone said in a statement it acknowledges the recent press speculation over the matter and confirmed it is in discussions with Verizon over the possible disposal of its stake. However, it said "there is no certainty that an agreement will be reached".
Shares in Vodafone rose more than seven per cent on the news and Verizon climbed three per cent.
By Tony Aynsley