Mobile phone firm Vodafone says it will not sell its $10bn (£4.9bn) stake in US company Verizon Wireless despite pressure from shareholders.

Vodafone is resisting calls for it to cash in its 45 per cent stake in the fast-growing company to release billions of pounds to shareholders.

The second largest mobile phone company in the world says the value of its shares have risen in the past year and the board is confident that retaining the investment is in the best interests of shareholders.

Verizon Wireless is expected to pay dividends on the investment by 2009.