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To: straight life who wrote (6963)	8/28/1999 1:44:00 AM
From: djane	Read Replies (1) \| Respond to of 29987

Vodafone Woos Bell Atlantic Thursday August 26 12:25 PM ET By Kirstin Ridley LONDON (Reuters) - Vodafone AirTouch Plc, the world's biggest cellphone company, wants to cast its U.S. net wider less than two months after completing a $62 billion takeover of one of America's biggest wireless operators. Industry sources and analysts said Thursday that winning national U.S. coverage was the most pressing issue for British-based Vodafone and a joint venture with Bell Atlantic, 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 telecommunications analyst. A deal with Bell Atlantic would give Vodafone access to over 20 million U.S. customers, a network of licenses 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 Atlantic would save Vodafone billions of pounds it might otherwise spend on buying or building U.S. networks sent the stock jumping to close 5.4 percent higher at 1,300 pence. ``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 licenses 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.' And Vodafone Chief Executive Chris Gent said in June the group would have to spend $2.0-3.0 billion over the next few years on either buying spectrum or wireless groups, especially in the East Coast, if its PrimeCo venture were abandoned. PrimeCo operates mainly in the Midwest and has 1.3 million subscribers in markets with a potential customer base of 61 million. It was set up in 1994 to bid for regional licenses across the U.S. to plug gaps in its owners' national portfolios. Analysts said if Gent's fails to woo Bell Atlantic, ``clear favorites' on the acquisition trail were NextWave or Omnipoint. Both come with a string of licenses including New York, the most visited place for business travelers. 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. (Additional reporting by Alexander Smith) Copyright ¸ 1996-1999 Reuters Limited.