Vodafone is thought to have scrapped plans to purchase rival mobile network T-Mobile in the UK after shareholders voiced their concerns over the deal.

Vodafone chairman, Sir John Bond revealed at the company's 25th annual general meeting that "there is no sale process for T-Mobile".

However, he also added that "consolidation would be quite a good thing" as there are too many networks and too few customers in the UK.

O2 is the UK's biggest mobile network with a 27 percent share of the market, while Vodafone is in second place with 25 percent. However, a tie-up with T-Mobile would ensure Vodafone's market share rises to 40 percent. O2 is also thought to be considering a merger with T-Mobile.

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