The mobile phone provider's shares fell 14 percent on Tuesday after it scaled back its full-year sales forecast amid tough economic conditions and weaker-than-expected sales.
"This action reflects the board's belief that the share price significantly undervalues Vodafone," the company said in a statement.
Vodafone's revenue warning sent telecommunications stocks lower and cast a shadow over the imminent departure of CEO Arun Sarin.
Vodafone shares rose 1.47 percent to 130.9 pence (2.62 dollars) Wednesday morning on the London Stock Exchange.
