COMPANIES & FINANCE: EUROPE: Vodafone to publish offer by Christmas MANNESMANN TEST FOR GERMAN BID CODE:
100% match; Financial Times ; 16-Dec-1999 01:52:47 am ; 387 words
Vodafone AirTouch, the UK telecoms group, has agreed to launch before Christmas its tender offer for Germany's Mannesmann - or risk having to shelve its bid, according to the Frankfurt takeover commission.
The timetable discussed with the UK group is a first sign that Germany's takeover commission is exerting its authority in the biggest takeover bid ever mounted.
In recent weeks, Mannesmann has expressed increasing frustration at Vodafone's tactics - including the long period that has elapsed since the UK group unveiled its bid on November 19.
Germany's takeover code says a tender offer must be published "without undue delay" after an initial announcement is made. Josef Tobien, head of the takeover commission, confirmed yesterday that Vodafone had agreed that meant it would publish its tender offer before Christmas. However "no ultimatum" had been issued, he said.
If Vodafone AirTouch failed to meet the Christmas deadline, it could apply for an extension but would have to supply good reasons why it wanted a delay.
If its application for an extension was rejected, the takeover commission could insist on a "cooling-off" period.
If the commission followed UK practice, that could prevent Vodafone from launching a bid for 12 months.
Advisers to Vodafone, which has said it would abide by Germany's takeover code, would not confirm they had agreed to launch its offer before Christmas. They said they would publish the document "around Christmas" but faced significant additional complexities because of having to meet regulatory requirements in three main countries - the US, the UK and Germany.
The German code is voluntary and offers much more scope for interpretation than UK or US rules. But it seems unlikely that Vodafone would over-step the Christmas deadline for an offer without good reason.
Once the offer is launched formally, Mannesmann would have 14 days to respond - although it seems likely this deadline would be extended because of the Christmas and New Year holidays. The offer period, which could be between 28 and 60 days, is expected to start from the beginning of January.
Vodafone's hostile bid is the biggest test yet for the German takeover commission and the takeover code, which was last revised in January.
"For the commission, this is new territory. They are learning fast," said one banker involved in the deal. |
