LONDON (AP) — Vodafone Group PLC shareholders voted yesterday against plans by a rebel investor group to overhaul the company by spinning off its majority stake in US-based Verizon Wireless and massively increasing its debt.Shareholders overwhelmingly supported Vodafone's management, with more than 93 percent of proxy voters against a recommendation by activist investor group Efficient Capital Structures' calls to spin off, or issue a tracking stock for, Vodafone's 45 percent stake in the US mobile operator.

Almost 95 percent of proxy voters, which make up the vast majority of Vodafone's institutional investors, were also against Efficient Capital's call for the issuance of new listed bonds to shareholders.

The votes at Vodafone's annual meeting scuppered Efficient Capital's plan to load up the company with an extra $34 billion ($70.2bn) in debt to return more cash to investors.

Vodafone chairman John Bond criticised the "extraordinary" level of debt which the company would have to take on under the bond issue, which would increase its interest payments by around $2bn ($4.1bn) and limit the board's flexibility.

Chief executive Arun Sarin also praised Verizon Wireless's double-digit growth and indicated the company had no plans to end its involvement. "We see a great future for the business," he told shareholders.

Some analysts believe that Vodafone should abandon its minority stake in Verizon Wireless to better drive growth in Europe and Asia as markets become more competitive and pressure grows to generate extra revenues from each customer.

However, Vodafone reported last week that Verizon Wireless added 1.6 million customers during the first quarter, matching the gain in the previous three months.

No representative from Efficient Capital, which is headed by former telecommunications equipment group Marconi Co. Ltd. executive John Mayo, addressed yesterday's meeting.