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Technology Stocks : Nextwave Telecom Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (153)	8/26/1999 2:07:00 PM
From: Caxton Rhodes	Respond to of 1088

Check out the bold below: Analysts said if Vodafone's ambitious Chief Executive Chris Gent's attempts to woo Bell Atlantic fail, ''clear favourites'' on the acquisition trail were NextWave or Omnipoint. Thursday August 26, 11:27 am Eastern Time FOCUS-Vodafone woos Bell Atlantic (Recasts adding analyst comment, updates share price para 6) By Kirstin Ridley LONDON, Aug 26 (Reuters) - Vodafone AirTouch Plc (NYSE:VOD - news), the world's biggest cellphone company, is seeking further U.S. expansion less than two months after completing an ambitious $62 billion takeover of one of America's biggest wireless operators. Industry sources and analysts said on Thursday that winning national U.S. coverage was the most pressing issue for British-based Vodafone and a joint venture with Bell Atlantic (NYSE:BEL - news), the group Vodafone outbid for AirTouch, was a preferred choice. ''The joint venture with east coast operator Bell Atlantic is absolutely their first choice,'' said one analyst. A deal with Bell Atlantic would give Vodafone access to a total of 20 million U.S. customers, a network of licences across the U.S. -- including prized New York -- and enough market clout to fight heavyweight rivals Sprint Corp (NYSE:FON - news) and AT&T Corp (NYSE:T - news). ''I don't think it's any secret that Vodafone is looking at what they should do in the U.S.,'' agreed one industry source. ''Clearly there is a relationship with Bell Atlantic, and trying to do something with them is one of the options.'' Hopes that a joint venture with AirTouch's former partner Bell Altantic would save Vodafone billions of pounds it might otherwise spend on buying or building U.S. networks sent the stock jumping 4.79 percent to 1292p by 1322 GMT. ''There's some fit there already and a closer alliance would make absolutely perfect sense,'' said another analyst. ''One of the big concerns with the stock is they are going to go out to the U.S. and spend a lot of money. Take away that risk and the share price should have a strong run.'' Such a deal would help piece together a jigsaw of national licences that would secure access to 42 of the top 50 markets in the world's single largest mobile industry. Sprint already has 49, AT&T has 45 and Bell Atlantic is in third place with 24. But Vodafone played down market talk, saying it was too soon to start speculating about any change in its U.S. strategy. ''We (already) have roaming agreements and there are all sorts of options,'' a spokesman said. ''You can build your own network out, continue with roaming agreements, you can buy other companies. But it's been less than two months since the merger went through. These things take time, and nothing has really changed since then.'' Some analysts say relations between Vodafone and Bell Atlantic have soured since the British-based group won the bid battle for AirTouch last year. While AirTouch and Bell Atlantic have an historical relationship, Bell is exercising its option to dissolve an effective joint venture called PrimeCo in what one analyst called a ''fit of pique.'' PrimeCo, an operator with around one million subscribers mainly in the Midwest but with potential access to some 58 million, was set up to bid for regional licences across the U.S. to fill the gaps in its parents' national portfolios. Analysts said if Vodafone's ambitious Chief Executive Chris Gent's attempts to woo Bell Atlantic fail, ''clear favourites'' on the acquisition trail were NextWave or Omnipoint. Both come with a string of licences including New York, the most visited place for business travellers. However, NextWave has filed for bankruptcy and Omnipoint is already the subject of bid by VoiceStream, which is backed by Hong Kong conglomerate Hutchison Whampoa . ''I think Vodafone could decouple the two (with a hostile bid),'' noted another analyst. ''I think they are using it as a negotiating tool to tell Bell Atlantic that if they don't play ball there are other things they can do.'' Hutchison is also the biggest shareholder in Vodafone's domestic arch-rival Orange Plc (quote from Yahoo! UK & Ireland: ORA.L). (Additional reporting by Alexander Smith)