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

To: David Wiggins who wrote (2073)	11/15/1999 7:37:00 AM
From: MrGreenJeans	Read Replies (1) \| Respond to of 3175

Financial Times-Lex-11/15 Vodafone misdials The die is cast. In rejecting Vodafone's bid proposal yesterday, Mannesmann has set the scene for the world's largest hostile takeover battle. How is the contest likely to pan out, assuming Vodafone now proceeds to launch an offer? Encouragingly, Mannesmann is indicating that it intends to mount a value-based defence, rather than a "barbed wire" one. The latter is possible thanks to Mannesmann's by-laws and German regulations, which make hostile bids for the company difficult. Of course, it is possible that this promise of good behaviour is just public relations spin. Mannesmann's board could always change its tune if it felt it was losing the value argument. But assuming Mannesmann stands by its word, the key issue is whether a fusion of the two companies would create value for their shareholders. Despite some differences of strategy, this seems likely. Geographically, their mobile networks fit together like hand and glove. Indeed, it seems hard to see a merger with any other partner adding more value to either's shareholders. The question then is not whether Vodafone and Mannesmann should merge, but the price at which a deal should be struck. Vodafone is understood to have offered E203 a share in its own shares for the group. There is no reason why Mannesmann should roll over at this level, a mere 10 per cent premium to its Friday close. Arguably, it was undervalued relative to Vodafone because of its engineering interests, which it is (slowly) demerging. It should fight its corner on value. But if Vodafone makes a satisfactory offer, Mannesmann should not frustrate it.

To: David Wiggins who wrote (2073)	11/16/1999 7:23:00 AM
From: MrGreenJeans	Read Replies (1) \| Respond to of 3175

Vodafone To Make New Bid For Rival Mobile phone giant Vodafone AirTouch says it will make a fresh bid for German group Mannesmann on Friday. Chris Gent, chief executive at Vodafone, said the company will meet its key shareholders over the next two days to discuss its next move. Vodafone's board will meet on Thursday and a fresh approach to the German company will be made the next day, he said.

To: David Wiggins who wrote (2073)	11/16/1999 7:42:00 AM
From: MrGreenJeans	Read Replies (1) \| Respond to of 3175

Vodafone boosts case with strong results (adds details, analyst and CEO comment) By Louise Ireland and Kirstin Ridley LONDON, Nov 16 (Reuters) - Vodafone AirTouch Plc (quote from Yahoo! UK & Ireland: VOD.L) bolstered its case in the battle for Germany's Mannesmann AG on Tuesday with first half results highlighting growth potential and the success of its last big acquisition. Vodafone shares rose as high as 301-1/2 pence, despite the prospects of a costly takeover fight, before trading off 1/2p at 292p as pre-tax profits in the six months to September 30 topped market expectations at 879 million pounds ($1.43 billion). Analysts had forecast profits in a range between 800 and 820 million pounds. The figures also demonstrated Vodafone's success in its last major acquisition, that of AirTouch of the U.S., analysts said. ``These are chunky numbers. They are above market expectations and are helpful strategically because they can say: 'You know our numbers in terms of AirTouch and we've beaten them',' said Williams de Broe analyst Nigel Hawkins. ``In terms of cost synergies which they've put out for Mannesmann 2003, they are going over the heads of the Mannesmann board and the AirTouch figures suggest they can deliver.' Vodafone plans to make a fresh bid approach to Mannesmann this week after an initial approach, worth 103 billion euros ($106 billion) or 203 euros per share, was rebuffed. Analysts believe it could afford as much as 240 to 250 euros per share. The complex set of results, that include the group's acquisition in January of U.S. carrier AirTouch for the first time, showed proportionate turnover up 36 percent to 5.780 billion pounds as customer numbers swelled by 59 percent to almost 31.5 million. Proportionate EBITDA (earnings before interest, tax and depreciation) before a string of exceptional items rose by 30 percent to 1.887 billion pounds while pre-exceptional operating profit added 28 percent to 1.303 billion pounds. ABN Amro analyst James Ross said: ``Vodafone's a good company with strong management and they have a convincing case. They have an excellent track record and there's nothing in these figures that suggests otherwise.' Chief Executive Chris Gent said the results had exceeded his expectations and painted a buoyant picture for the future. ``This excellent first set of results from the enlarged group bear testimony to the strength and resilience of our growing portfolio of international businesses,' he said. Analysts said the strong first half results had set up Vodafone well as it prepares a formal public bid for Mannesmann. ``They've given us their views of the future before the bid because under UK takeover rules they cannot do so afterwards,' said one analyst. ``They've presented us with a whole lot of forward looking statements and are steering us to some extremely high profit forecasts.'