Mobile phone giant Vodafone was today expected to write off up to £6 billion sterling from acquisitions it made during the telecoms boom.
The group will pay the price for a downturn in the value of telecoms stocks when it reports half-year results.
The non-cash items detracting from Vodafone's figures will include write-offs from Arcor, the German fixed-line telecoms business that Vodafone acquired as part of its takeover of Mannesmann two years ago.
The value of Vodafone's 2.2 per cent stake in China Mobile has also fallen sharply.
Further costs of £6.5 billion will come from acquisition charges relating to the Mannesmann deal.
Without the one-off accounting adjustments, Vodafone's underlying profits are likely to be at the upper end of City expectations with a figure around £4.6 billion.
PA