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To: SpudFarmer who wrote (41131)	9/15/1999 12:22:00 AM
From: Ruffian	Respond to of 152472

The Network Does Matter> Vodafone pondering Omnipoint approach The Scotsman VODAFONE AirTouch is considering trumping a GBP 1.1 billion bid for the US mobile phone network Omnipoint although it is also still pursuing a joint venture with [ Bell Atlantic ] which could lead to a GBP 49 billion flotation of any combined assets. In June Omnipoint ended more than a year of searching for a financial partner by agreeing a takeover by VoiceStream, a mobile phone company majority owned by Hutchison Telecom, and the deal is due to be completed by the end of the month. That gives Vodafone, whose AirTouch business is strong in the west of the US, just a couple of weeks to decide whether its ambition to create a pan-US network is best served through buying Omnipoint, which has licences in the eastern US but whose technology is not thought to be directly compatible with AirTouch. Vodafone wants a presence in the New York market which is served by Omnipoint, but Bell and another potential Vodafone target, Nextwave, also hold licences for the area. Discussions between Vodafone and Bell are continuing and they are thought to include the potential for any joint venture, of which Bell would own 55 per cent, to join the stock market within a couple of years. Vodafone is thought to be keen for a flotation option in case the volatile relationship between the two - not helped by Vodafone trumping Bell for AirTouch and then the dissolution of their PrimeCo network joint venture - turned sour. A combination of AirTouch's 25 network licences in western states with Bell's 24 licences in eastern states would offer their customers universal coverage in the US and give them a significant advantage over rival operators. At the weekend, Bell followed Vodafone's statement of last week by confirming that the pair were in talks although like its British counterpart it said there was no assurance the talks would result in a transaction. Rumours of talks between Vodafone, whose shares rose 60p to 1,253p yesterday, and Bell Atlantic, which the British company beat to buy AirTouch for GBP 37.6 billion earlier this year, first surfaced two weeks ago. Earlier this year Vodafone indicated it wanted to achieve a national presence in the US for its customers within a two- to three- year timeframe and said it expected to achieve this through joint- ventures or buying existing carriers or spectrum. Elsewhere in the UK telecommunications market, Energis has confirmed it is in talks to acquire [ Racal Electronics ] ' telecom arm in a deal which analysts expect to value the business at between GBP 750 million and GBP 800 million. Shares in Energis, which would not buy Racal Telecom's Translink or Fieldforce infra-structure and maintenance businesses, closed 36p higher at 1,627p. The sale is seen as a precursor to a break-up of Racal, which has a highly profitable defence electronics arm, and its shares closed up 25.5p at 402.5p. (Copyright 1999)