Vodafone-Airtouch (NYSE: VOD) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Vodafone-Airtouch (NYSE: VOD)

VOD 12.59

+0.4%

Dec 12 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: David Wiggins who wrote (2446)	1/31/2000 9:19:00 PM
From: MrGreenJeans	Read Replies (1) of 3175

MANNESMANN: Now the reality - Lex Column After the roadshows and the rhetoric, now for reality. With a week to go, the market is starting to deliver its verdict on Europe's E150bn ($147bn) mobile phone war. The spread between Vodafone Airtouch's offer and Mannesmann's shares halved from 14 per cent to 7 per cent on Monday. German institutions, which do not want to be seen tendering directly to Vodafone, appear to be selling in the market. Their stock is being picked up by arbitrageurs and by UK funds faced with the formidable task of getting up to weight in an enlarged Vodafone. This can only increase the pressure on Klaus Esser, Mannesmann's independent-minded chairman. Up to now, Mr Esser has done his shareholders proud. Mannesmann has produced excellent returns and Mr Esser has won many of the intellectual arguments. But Chris Gent of Vodafone has been savvier. He has simply adopted those elements of Mannesmann's strategy that investors like - such as the integration of fixed and wireless networks - while dangling his global reach and strong stock in front of them. Mr Esser, therefore, has to make a choice - and quickly. He can stick to his view that Vodafone's offer is inadequate to the bitter end. But if Vodafone is going to win with its current bid - which looks increasingly likely - fundamental values become irrelevant. It is then merely a question of getting the best price possible. Mr Gent has made it clear he will pay another 4-5 per cent in return for a recommendation, even at this stage. He is also offering jobs to Mannesmann's top management, which must be good for the combined entity. If Mr Esser wants to continue acting in his shareholders' best interests, it is time to do a deal.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next