Shares in Vodafone, the British mobile phone giant in exclusive talks with Eircom to buy its mobile phone subsidiary Eircell, fell more than 8 per cent yesterday amid reports that some investment banks were downgrading their earnings forecasts. Analysts said concern about the cost of acquiring new customers in the fast-growing German market was causing some brokers to reduce their expectations of the company this year.

Vodafone said the downgrades were not the result of any briefings to analysts.