Vodafone Mulls Bell Atlantic Link as It Considers U.S. Options
Bloomberg News
September 6, 1999, 3:07 a.m. PT
Vodafone Mulls Bell Atlantic Link as It Considers U.S. Options
London, Sept. 6 (Bloomberg) -- Vodafone Airtouch Plc, the
world's largest wireless company, said a link with Bell Atlantic
Corp. is among the options it's considering as the world's
largest mobile operator looks to develop its U.S. operations.
The U.K. company's shares rose 34 pence, or 2.7 percent, to
1,276 pence after British press reports renewed speculation about
a possible alliance with Bell Atlantic, the No. 1 U.S local phone
company. The two agreed to split their existing wireless venture
last month.
A new venture between Bell Atlantic and Vodafone AirTouch
could create a nationwide U.S. wireless phone network. The U.K.
company has vowed to build or buy new networks to extend its U.S.
reach after it and Bell Atlantic agreed to split their PrimeCo
Personal Communications LP venture earlier this month.
The U.K. company ``is continuing to review a number of
options for developing its U.S. mobile operations, including a
possible alliance with the U.S. mobile network of Bell
Atlantic,' Vodafone AirTouch said.
Though discussions with Bell Atlantic are continuing ``there
can be no assurance that any agreement can be reached,' the
company said.
Bell Atlantic, which has 6.6 million wireless customers,
decided in April to break up Primeco, three months after it lost
a bidding war to Vodafone to buy AirTouch Communications Inc.,
Bell Atlantic's original partner in PrimeCo. The breakup left
Vodafone AirTouch without service in the Eastern U.S. Bell
Atlantic is set to become the No. 1 U.S. wireless provider
following its $91.7 billion purchase of GTE Corp.
The Times of London reported two weeks ago Vodafone AirTouch
Chief Executive Chris Gent was in talks with Bell Atlantic,
citing unidentified sources close to Vodafone AirTouch. S
Saturday's U.K.'s Guardian newspaper, however, cited Gent as
saying there is only a 20 percent to 30 percent chance that an
agreement could be reached.
The company's other possible bid targets in the U.S. could
include Omnipoint Corp. and Nextwave Telecom, which have wireless
networks concentrated in the eastern part of the U.S., the
Guardian reported.
Vodafone completed its $74.4 billion purchase of AirTouch in
June, giving it cell networks on six continents, including a
system that blankets Europe. |
