Vodafone has dismissed as "wholly without merit" a legal action brought by the Jordan team in a row over Formula One sponsorship.

Neither Jordan nor Vodafone would comment on the details of a Sunday newspaper report that Jordan was seeking 150 million pounds in damages from the mobile phone company.

But both sides said on Monday they were expecting legal proceedings to start shortly.

"Vodafone Group Plc confirms that proceedings are being brought by Jordan Grand Prix Limited," Vodafone said in a statement.

"The claim concerns discussions which Vodafone had with Jordan and other grand prix teams about potential sponsorship early in 2001.

"Vodafone believes and has been advised by leading counsel that the claim is wholly without merit and on that basis Vodafone is vigorously defending its position."

Vodafone currently sponsor world champions Ferrari.

The Sunday Times reported that Jordan were claiming Vodafone had agreed to sponsor the team but instead signed a deal worth an estimated 110 million pounds with Ferrari.

Jordan, one of three non-manufacturer teams remaining in Formula One after the collapse of Arrows and Prost, are struggling to raise backing this season while Ferrari are one of the wealthiest teams.