Vodafone bid closes Feb 7, result later
LONDON, Jan 31 (Reuters) - The world's largest hostile takeover bid -- a 150 billion euro ($147.2 billion) offer from Vodafone AirTouch Plc for Germany's Mannesmann AG -- closes at 2300 GMT on February 7, but results will only come a day or two later.
Vodafone (quote from Yahoo! UK & Ireland: VOD.L), which is keen to secure prized European joint ventures by taking control of its former German ally, said on Monday it was unlikely to publish details about how much of Mannesmann it had clinched until at least a day later.
If Vodafone wins more than 50 percent of its former European ally, its offer will be extended for at least another five days to give Mannesmann shareholders enough time to tender shares should they wish to avoid remaining investors in a rump minority.
The extension would also allow Mannesmann's biggest shareholder, Hong Kong conglomerate Hutchison Whampoa , to tender its shares. Vodafone is hoping that the conglomerate, which holds 10.2 percent of Mannesmann, will tender its stake once there is a change of control.
Although Vodafone's chief executive Chris Gent said earlier this month that he would ``walk away' if he failed to reach 50 percent of his bid target, he said last week that the British cellphone giant might consider holding a minority stake.
But the British cellphone giant expects Mannesmann's board to recommend its offer, should it reach the crucial 50 percent mark. And it continues to insist it is confident of doing so.
If Mannesmann's board fails to recommend the bid were Vodafone to win half of its shares, the British predator has said it would call an extraordinary shareholder meeting to eject Mannesmann's supervisory board.
Nevertheless, with eight days to go before the bid closes, advisers in the British and German companies continue to try to find common ground and reach an agreed deal.
So far, Vodafone has said it might modestly boost the terms of its all-share bid to allow Mannmesmann shareholders to hold 48.9 percent of the enlarged company, rather than the 47.2 percent currently on offer, in return for a recommendation.
Newspapers have also said Mannesmann might accept a deal that gave its investors 52 percent of the combined group, rather than the 58.5 percent it had previously demanded. The company has also said it might accept a hefty cash element if Vodafone insisted on owning more than 50 percent of an enlarged group. |
