MCI WorldCom Bids for AirTouch; Price Is Below Vodafone Offer
Bloomberg News
January 8, 1999, 12:18 p.m. ET
MCI WorldCom Bids for AirTouch; Price Is Below Vodafone Offer
New York, Jan. 8 (Bloomberg) -- MCI WorldCom Inc. is making
a stock offer for AirTouch Communications Inc., the largest U.S.
wireless phone company, at a price less than an offer from
Vodafone Group Plc, people familiar with the companies said.
Vodafone has made an offer valued at $90 a share, or
$54 billion, while people familiar with Bell Atlantic Inc.'s
plans say it offered about $43 billion. WorldCom's offer is
higher than Bell Atlantic's, the people say.
WorldCom is betting AirTouch's management and investors
would rather own its stock than shares of Vodafone, which some
analysts and investors say are overvalued. WorldCom is also
betting many of the biggest investors of San Francisco-based
AirTouch would sell shares of Vodafone, if received in a stock
swap, driving down the price.
The bid from MCI WorldCom, which became a telecommunications
powerhouse by acquiring 50 companies in 10 years, is an about-
face for Chief Executive Bernard Ebbers. WorldCom has focused on
telephone services for business and has stayed away from offering
wireless services.
Officials of AirTouch and MCI WorldCom declined to comment.
--Dylan Ratigan in New York with Colleen McElroy (212) 318 2300
|
