Angry investors in Vodafone, who have tried to oust Mr Sarin, have been trying to get the company to sell its 45 per cent holding in Verizon Wireless, which is said to be worth between $38 billion (£20 billion) and $50 billion. But Ivan Seidenberg, the Verizon chief executive, indicated yesterday that the partnership would remain intact for at least the next two or three years.

In a conference call with analysts and investors, Mr Seidenberg said that he had held a meeting with Mr Sarin last week and that both chief executives were “extremely pleased” with their current investment arrangement.

Verizon has often said that it is keen to gain full ownership of the highly profitable Verizon Wireless. The mobile phones business is widely seen as the strongest arm of the US telecoms operator.

Vodafone came close to selling out two years ago when it made an abortive offer for AT&T but has since stuck to the line that it is happy to keep the Verizon Wireless stake.

However, plans to sell the stake and dissolve the partnership appear to be off the agenda for now as Mr Seidenberg moved to clarify the terms of the partnership. “They (Vodafone) feel it is a good position for them and that’s OK with us,” Mr Seidenberg said. “What is good for investors to understand is there is clarity in the whole partnership.”

Concern over Vodafone’s strategy, including worries over its continued ownership of such a large stake in Verizon Wireless, led to a shareholder revolt last week. About 10 per cent of shareholders, including the institutions Standard Life Investments, Morley Fund Management and Hermes Pensions Management, tried to oust Mr Sarin at the company’s annual meeting.

In a highly unusual move the investors voted against the re-election of Mr Sarin to the Vodafone board, while another 6 per cent of shareholders abstained.

Standard Life, which owns about 1.7 per cent of Vodafone stock, has been particularly vocal in calling for the Verizon Wireless shareholding to be sold. The investment house believes Vodafone should concentrate on its core European markets and return to shareholders the substantial amount of cash it would receive if its Verizon Wireless stake were sold.

Vodafone rejected a $38 billon offer from Verizon to buy out its stake in May.

Standard Life is believed to have supported the group’s decision to balk at the price, as the investment house believes the stake is worth closer to $50 billion.

Neither Standard Life, Morley nor Hermes would comment on Mr Seidenberg’s remarks yesterday, which came as Verizon reported a 24 per cent drop in earnings for the second quarter of the year. Net profit came in at $1.61 billion, or 55 cents a share, compared with $2.11 billion, or 75 cents a share, a year earlier. Revenue for the three months was $22.68 billion ($18.05 billion).

Times Recommends

• Darling under pressure on record public debt
• Mortgage drought deepens on 32% lending fall
• Oil prices firm after 10% drop to below $130