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Technology Stocks : Vodafone-Airtouch (NYSE: VOD) -- Ignore unavailable to you. Want to Upgrade?

To: David Wiggins who wrote (2044)	11/7/1999 1:30:00 PM
From: MrGreenJeans	Respond to of 3175

Vodafone bosses in carve-up talks Sunday Times of London Andrew Lorenz TOP executives from Vodafone AirTouch and France Telecom have met within the past fortnight to discuss a near-œ70 billion joint break-up bid for Mannesmann and Orange, its new British mobile-phone subsidiary. Vodafone, which is being advised by Goldman Sachs, wants to pre-sell Orange to France Telecom, which is being advised by Salomon Smith Barney. Such an agreement would clear the way for Vodafone to take over the mainland European operations of Mannesmann, which owns the mobile market leaders in Germany and Italy. The main stumbling block to a carve-up of Mannesmann is the price that France Telecom would be ready to pay for Orange. Mannesmann last month agreed to pay more than œ18 billion for the business, a price universally regarded as stratospheric. France Telecom would want to pay less for Orange, but Vodafone could not afford to make a big loss after paying a premium for the whole Mannesmann group. Several experts believe the only way for Vodafone to make the sums add up is if it waits and hopes that Mannesmann shares, which have suffered since the Orange deal, falls to a level that gives Vodafone the headroom to accept a relatively low valuation of Orange. Some industry insiders believe Vodafone will struggle to get a bid for Mannesmann off the ground, but it is widely known that Chris Gent, Vodafone's chief executive, is ready to do everything possible to launch an offer. The Sunday Times revealed earlier this year that Gent was positioning Vodafone as a "white knight" to step in if another bidder tried to buy Mannesmann. But Vodafone is determined to gain control of the group and is now ready to make an aggressive bid. France Telecom, which has bought the third-largest German mobile operation and also funded NTL's takeover of CWC Communications, is a natural buyer of Orange. Vodafone would have to sell Orange on anti-trust grounds were it to succeed with a bid for Mannesmann.

To: David Wiggins who wrote (2044)	11/7/1999 2:01:00 PM
From: MrGreenJeans	Respond to of 3175

France Telecom, Vodafone Seen Making $73 Billion Joint Bid for Mannesmann By Marthe Fourcade France Telecom, Vodafone Mull Bid for Mannesmann, Paper Says London, Nov. 7 (Bloomberg) -- France Telecom SA, Europe's No. 2 phone company, and Vodafone AirTouch Plc, the world's largest wireless phone company, are in talks about making a joint 45 billion pound ($73 billion) hostile bid for rival Mannesmann AG of Germany, according to a U.K. newspaper. Vodafone wasn't immediately available for comment. France Telecom said it would call back later with a response and a spokesman for Mannesmann, Germany's No. 1 mobile phone company, said he was ``not aware' of such a bid and declined to comment further on the story published by the Sunday Telegraph. Mannesmann, France Telecom and rivals are racing to capture a larger chunk of the European mobile-phone market, which is expected to double in size over the next two years. Just last month, Mannesmann offered about $34 billion for U.K. cellular operator Orange Plc while France Telecom agreed to pay almost $9 billion to gain control of the German wireless company E-Plus. The Orange purchase and a plan to split off its engineering and automotive operations make Mannesmann an appealing target for expansion-minded rivals, according to analysts and industry executives. Shares in the Dusseldorf-based company climbed almost 7 percent last week on speculation it would be involved in an industry tie-up. Vodafone advisers at Goldman, Sachs & Co. hatched out a takeover plan yesterday and have been sounding investors for several days about reactions to such a bid, the Sunday Telegraph reported today without citing sources. Should the French and U.K. companies take over Mannesmann, Vodafone would keep the company's continental European mobile phone assets and France Telecom would take Orange, the paper said. ¸1999 Bloomberg L.P. All rights reserved. Terms of Service, Privacy Policy and Trademarks.

To: David Wiggins who wrote (2044)	11/7/1999 2:18:00 PM
From: MrGreenJeans	Read Replies (1) \| Respond to of 3175

Vodafone targets Mannesmann By Neil Bennett and Mary Fagan-The Telegraph VODAFONE Airtouch, the UK's largest mobile communications group, is holding talks with France Telecom about a joint œ45bn hostile bid for Mannesmann of Germany, which has agreed a œ19bn takeover of Orange, the British mobile phone company. Vodafone's broker, Warburg Dillon Read, has been sounding out Vodafone's investors' sentiment about a hostile move. If they decide to bid, Vodafone would acquire Mannesmann's continental European mobile phone assets and France Telecom would take Orange. Bankers at Goldman Sachs, Vodafone's main adviser, were said to be meeting yesterday in the bank's Fleet Street headquarters to work on the details of a bid. Goldman is also said to have been canvassing views about a bid. A takeover of Mannesmann would be fraught with legal difficulties. The company's regulations prevent any of its shareholders controlling more than 5 per cent of the votes. This means that even if Vodafone and France Telecom acquired a majority stake they would still not have control. The two groups may be forced to launch a lengthy legal action to take control. Alternatively, they could hope to rely on Mannesmann's shareholders, who could vote at a special meeting to scrap the limitations. The takeover of Orange, announced last month, was widely seen as a defensive move by Mannesmann and drew sharp criticism from the German group's investors over the price to be paid for the UK company. But by the time the move was announced, Mannesmann had secured the agreement of Hutchison Whampoa, which owns 44 per cent of Orange. One analyst said: "This is the time to do it, to exploit the anger of Mannesmann's shareholders who are angry about how much they are prepared to pay for Orange. With the offer document for Orange now out, Mannesmann is unable to alter the offer." Klaus Esser, Mannesmann's chairman, admitted in a recent interview with The Telegraph that the takeover of Orange made the enlarged group an attractive takeover target. Mannesmann would be a rich prize for Vodafone. An acquisition would give the British company control of D2 in Germany and Omnitel in Italy, two of Europe's most successful mobile phone companies. This would cement Vodafone's position as the world's largest mobile phone operator, a role it grabbed with the acquisition of Airtouch at the start of the year. Meanwhile, with the acquisition of Orange, France Telecom would emerge as one of Britain's largest telecoms groups. It recently bought a 25 per cent stake in NTL, the country's leading cable group. In turn, this enabled NTL to buy the cable assets of Cable & Wireless. France Telecom is also in the process of acquiring control of E-Plus, the German mobile phone network, by buying stakes from Vodafone, Veba and RWE. Vodafone and France Telecom would sell Mannesmann's remaining engineering businesses, which Mannesmann has already announced the intention to demerge in 2001. Mannesmann's shares leapt more than 8 per cent in Frankfurt on Friday, as dealers became aware that Vodafone's intentions were serious. Orange shares also rose almost 5 per cent. Until now Mannesmann's share price has been depressed as investors have vented their anger on the group's high priced acquisition of Orange.