Is Vodafone, newly repentant for its crimes against shareholder value, being dragged back for one last US caper? Trust is so fragile that rumours that Verizon Wireless, of which it owns 45 per cent, might bid for US operator Sprint, cut $4.4bn from Vodafone's value on Tuesday. Adjusted for its stake, this implies value destroyed equivalent to 20 per cent of Sprint's $49bn enterprise value.

A deal would make far more sense than Vodafone's reckless bid for AT&T Wireless. Verizon Wireless and Sprint share the same technology and together would be a leader with a 35 per cent market share. Sprint shareholders might be tempted by cash, rather than the stock merger with Nextel currently on the table. Still, regulatory risk is significant, and Nextel, which has no strategic alternative, would probably fight hard. Vodafone has real influence. It can veto deals exceeding 20 per cent of Verizon Wireless's equity value, which Sprint would. Its approval could come at a price the renewal of Verizon Wireless's dividend agreement, due to lapse in March. Verizon is refusing to do this, since it can continue to extract cashflow through the repayment of loans extended to Verizon Wireless. The dispute has also stranded $8.5bn of cash in Vodafone's Italian subsidiary, of which Verizon owns part.