Mannesmann Said Eyed for Takeover
LONDON (AP) -- Vodafone AirTouch PLC, the world's largest mobile phone company, and French telecommunications leader France Telecom are reportedly considering making a joint takeover bid for Germany's Mannesmann AG.
A potential offer of 45 billion pounds, or $72 billion, would be the latest step in the breakneck consolidation of Europe's phone businesses.
Such a bid would equal more than twice what Mannesmann agreed to pay last month in a friendly offer for Orange PLC, the smallest of Britain's four mobile carriers.
France Telecom is eager to own Orange, which Vodafone would have to sell if it took over Mannesmann, the Financial Times reported. Under British law, no company can hold more than one mobile phone license.
Vodafone and Mannesmann called newspaper reports speculative and refused further comment. Calls to France Telecom seeking comment were not returned.
Vodafone has had a close relationship with Mannesmann and is believed to have been unhappy about Mannesmann's planned purchase of Orange. It played down any possible competitive threat when Mannesmann announced its buyout of Orange last month.
Mannesmann still must obtain approval from Orange shareholders for the deal to proceed, but Hong Kong-based Hutchison Whampoa, Orange's biggest shareholder, has already agreed to the purchase price.
Mannesmann, an engineering firm, has evolved into Germany's No. 1 mobile company since buying two Italian phone companies this summer in a deal with Olivetti SpA.
By purchasing Orange, it would become the biggest mobile phone company in Europe. Mannesmann would gain a strong foothold in Britain, where Orange has an 18 percent market share. However, many analysts and investors said the German company's offer of $32.9 billion for the firm was too high.
Other companies, including at least one from the United States, have also expressed interest to Vodafone in buying Orange, The Guardian newspaper reported.
Vodafone shares were down 0.4 percent at midday from Friday's close in London, while Mannesmann stock was trading up 2.2 percent in Frankfurt, Germany. In Paris, France Telecom was down 2.0 percent.
This year has seen a series of wireless takeovers and partnerships, beginning when Britain's Vodafone bought AirTouch Communications of the U.S. for $56 billion, creating Vodafone AirTouch.
Last month, France Telecom announced plans to buy a majority stake in E-Plus, Germany's third-largest mobile network, for $7.9 billion. Deutsche Telekom of Germany said a deal to increase its presence in France was expected soon.
And in recent months, mobile calling ventures have been formed between AT&T (NYSE:T - news) and British Telecommunications and between Bell Atlantic and Vodafone AirTouch. |
