Vodafone to Split Shares After AirTouch Acquisition (Update4)
Bloomberg News
May 20, 1999, 2:55 a.m. PT
Vodafone to Split Shares After AirTouch Acquisition (Update4)
(Updates VOD share price in 5th paragraph.)
London, May 20 (Bloomberg) -- Vodafone Group Plc, the
largest U.K. wireless phone company, said yesterday it will split
its stock for the first time in five years after completing its
$71.7 billion purchase of AirTouch Communications Inc.
Vodafone also expects to sell its 17 percent stake in E-
Plus, Germany's third-largest wireless phone company, for more
than $1 billion, Chief Executive Christopher Gent said yesterday
in an interview, adding Vodafone has received bids from 10
companies for its stake. He declined to identify the bidders.
Vodafone's American depositary receipts have more than
doubled since October as investors bet the combined company will
be able to sign up more customers and boost sales and earnings at
a fast pace. Vodafone last split its stock in July 1994, when it
had a 3-for-1 split. Gent didn't provide details on the terms of
the next stock split.
''We would like to make the stock accessible to the retail
market,'' Gent said. ''We'll look at it once we've gotten through
this transaction.''
Vodafone shares rose 39 pence, or 3.2 percent, to 1,261. The
shares of San Francisco-based AirTouch rose 2 11/16 to 102 1/8
yesterday.
Single-Rate Plan
London-based Vodafone agreed to buy AirTouch in January. The
companies expect to complete the acquisition, which will create
the world's largest wireless phone company, in June after getting
shareholder and regulatory approval.
The combined company will introduce a calling plan later
this year allowing customers to place calls from anywhere in
Europe and pay the same per-minute rate, Gent said. AT&T Corp.,
one of the largest U.S. wireless phone companies, has had great
success with a similar plan in the U.S.
''We're working together so we can come out with a single
rate plan for European that will be very attractive,'' Gent said.
''There will be new services launched from all of our companies
over the next six months.
Gent also said the company plans to expand further by
boosting its stake in existing carriers and buying more
companies.
Meanwhile, AirTouch is trying to work out an agreement with
Bell Atlantic Corp. to continue their wireless joint venture,
known as PrimeCo Personal Communications LP. Bell Atlantic has
said it plans to break up the venture after Vodafone completes
its purchase of AirTouch.
If a compromise can't be reached with Bell Atlantic,
Vodafone-AirTouch will buy new airwave licenses or other
companies to replace coverage in some regions, Gent said.
Regards, Dave
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