And things become more clear in the murky waters of 'The Merger'.........
Aug. 20 (Financial Mail on Sunday/KRTBN)--British Telecom and US giant AT&T are
considering the merger of their mobile phone operations -- but the groups are
not discussing a full merger, insists BT's chief executive, Sir Peter Bonfield.
The City was swept by speculation last week that the companies, which have
already combined their international operations into the Concert joint venture,
were considering a full link-up after Bonfield told reporters that he and AT&T
chairman Michael Armstrong had talked about the idea.
"Are we in merger discussions? No -- that's as clear as I can make it,' he told
Financial Mail.
But Bonfield, who last week saw BT's share price fall to UKpound 8.12, the
lowest for 20 months, said that the idea of merging AT&T's US mobile phone
assets with BT's European and Far East activities had been considered. A link-up
would create a globe-spanning mobile group to rival Vodafone.
A combined mobile business could also shoulder some of the heavy debt burden
that BT has built up in the quest to take full control of European joint
ventures and win licences for third-generation mobile services.
Last week, BT paid UKpound 4.25 billion to acquire 45 per cent of German mobile
group Viag and a further UKpound 5 billion for a mobile licence in Germany.
"We have a relationship with AT&T on roaming, so our customers can use their
network and vice versa, but without an equity deal,' said Bonfield.
He thought the fact that AT&T had a big presence in America and BT had the same
in Europe would work to the advantage of both companies.
Asked about a full merger of the two mobile businesses, Bonfield said: "Anything
is possible.'
He added that BT's restructuring "is right on course and once our mobile
business is set up by the end of the year we will decide on an initial public
offering -- alone or in combination -- or on alternatives'.
Bonfield said BT's biggest restructuring since privatisation in 1984 could not
be further speeded up.
He said that in the mobile arena, "we have taken control of joint ventures in
Ireland and the Netherlands and last week we took our stake in Germany's Viag to
90 per cent.
"We have third-generation licences in the UK, Netherlands and Germany. What
remains is the Italian third-generation mobile licence where we are part of a
consortium.' |
