TELECOMMUNICATIONS giant Vodafone continued with its drive to focus on key markets by selling its stake in a French mobile phone firm for £7bn today.

The sale of the 44 per cent stake in SFR comes as the UK based firm looks to reduce its assets in markets where it is not dominant or in firms where it does not have the controlling stake.

It will return 4 billion of the proceeds to shareholders following the sale agreement with media giant Vivendi.

The deal with media giant Vivendi, which is due to be completed in June, means Vivendi will have 100per cent ownership of SFR, Frances second largest mobile phone company.