FOCUS-Vodafone to bring takeover case back to Germany
(Adds detail and EU's approval of Orange takeover)
By Steven Silber
FRANKFURT, Dec 21 (Reuters) - Vodafone AirTouch Plc's (quote from Yahoo! UK & Ireland: VOD.L) charm offensive to woo Mannesmann AG shareholders into accepting its record hostile bid reaches a crucial stage on Thursday when it presents its official takeover blue-print.
The British mobile phone operator said on Tuesday that its chief Chris Gent would make the trip to Duesseldorf to set out details of the bid and answer questions about the 131 billion euro ($132.1 billion) all-share offer which opens on Christmas Eve.
Vodafone is giving shareholders in the German telecoms and engineering group until February 7, 2000 to respond to the offer.
Many investment fund companies with stakes in Mannesmann AG are still undecided on whether a link up with Vodafone would enhance the Germany company's potential to reap profits from its lucrative telecoms, Internet and tele-commerce activities.
Thomas Meier, fund manager at Frankfurt's Union Investment, said his firm had made no final decision but did not expect Vodafone to sweeten its current offer.
``No, we absolutely don't expect that. I think that would be a bad sign for us as shareholders in Vodafone as well....It's quite a good offer and there is still quite a big discount,' Meier said.
Vodafone's offer of 53.7 of its own shares for every Mannesmann share means that Vodafone, the world's largest cellphone operator, is offering a premium of around 23 percent to the German firm's share price.
Once Vodafone files its tender, Mannesmann has 14 days to respond with its defence, although it can ask for an extension. Its defence could then spark a second round of transatlantic roadshows as both camps seek to conclusively win over investors.
EU APPROVES MANNESMANN TAKEOVER OF ORANGE
Mannesmann's strategy to expand was given a boost on Tuesday when the European Commission cleared its plan to buy British mobile phone operator Orange Plc (quote from Yahoo! UK & Ireland: ORA.L) on condition it sells its interests in cellphone operator Connect Austria.
When Mannesmann notified the Commission of the Orange deal, it undertook to divest its interests in Connect Austria.
German utility Viag AG (quote from Yahoo! UK & Ireland: VIAG.F) said on Tuesday it held initial talks with Orange about buying its 17.45-percent stake in Connect Austria, the country's third-largest cellphone operator.
Viag said it was optimistic it would succeed in acquiring Orange's stake in the Austrian company.
Viag, which already holds a 20-percent stake in Connect Austria, said it had also talked to Mannesmann about the potential acquisition.
The European Union also said that confidence expressed by Vodafone that its planned takeover of Mannesmann would present no major competition problems was purely Vodafone's own assessment.
Commission spokesman Michael Tscherny said there had been no meetings so far between EU Competition Commmissioner Mario Monti and the heads of Vodafone or Mannesmann or any meetings with the EU's competition department. |
