China Mobile Limited (SEHK:941) is seeking to acquire a multi billion stake in Vodafone Group Public Limited Company (LSE:VOD), sources said. City sources said China Mobile has studied the possibility of buying between 5% to 20% stake of Vodafone. It is not clear whether China Mobile will follow through with its plan to buy a significant shareholding in Vodafone.

It is believed the Chinese were looking at buying a stake from big institutional shareholders or asking Vodafone to issue the company with new shares. Some City sources believe a deal with China Mobile is unlikely. Vodafone declined to comment while China Mobile did not respond to requests seeking comment by Mail on Sunday.