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

To: David Wiggins who wrote (2094)	11/17/1999 7:48:00 AM
From: David Wiggins	Read Replies (1) \| Respond to of 3175

Bell Atlantic Will Not Bid for Mannesmann NEW YORK (Reuters) - Bell Atlantic Corp (NYSE:BEL - news). does not plan to bid for Germany's Mannesmann AG, which rebuffed a takeover offer from Vodafone AirTouch Plc (NYSE:VOD - news), because the price is too high, said Bell Atlantic Chairman and Chief Executive Ivan Seidenberg. Bell Atlantic, SBC Communications Inc (NYSE:SBC - news)., MCI WorldCom Inc (NasdaqNM:WCOM - news). and British Telecommunications Plc (NYSE:BTY - news) have been seen as potential 'white knight' suitors for Mannesmann, which Sunday rejected Vodafone's 103 billion euro ($106 billion) bid. Vodafone vowed on Tuesday to make a fresh bid for Mannesmann this week. ``I think Mannesmann and Vodafone belong together,' Seidenberg said following a presentation at the Warburg Dillon Read Global Telecom conference in New York. ``These valuations are so far out of what I would consider to be reasonable that that's not something that you would see us (considering),' Seidenberg said. Sources close to Bell Atlantic told Reuters on Monday the local telephone company was unlikely to enter a bid for Mannesmann. Bell Atlantic, which plans to forge a U.S. wireless telephone partnership with Vodafone, would be unlikely to compete against Vodafone for Mannesmann. If Bell Atlantic entered the fray at all, it would more likely be to help Vodafone sweeten its bid for Mannesmann, sources said.

To: David Wiggins who wrote (2094)	11/17/1999 10:16:00 AM
From: hl	Read Replies (1) \| Respond to of 3175

First of all, I agree that a combination between VOD and Mannesmann is logical. On the other hand, I know how corporate transactions are played over here in Germany: That's the reason I make the bulk of my investments in the US, the UK, Canada and Australia. Public opinion is very much against big takeovers. Many fear that this results in more job losses (and this is a crucial topic when there are almost 10 % of total workforce unemployed). Trade unions are far more powerful than in the US or the UK. These people are really some sort of socialists and they don't like such deals at all (I guess nobody of these guys wants to lose his board seat, so a friendly deal is unlikely). Mannesmann is also trying to improve sharholders loyality: Today I saw a full page add in the Handelsblatt (some sort of Germany's counterpart of the WSJ or the Financial Times), where they showed a chart of Mannesmann for the last 5 years rising 805 % in contrast to the Euro Stock 50 index rising only 280 %. The headline was: Mannesmann w„chst weiter (means: Mannesmann continues to grow). Mr. Gent from VOD should not expect a surrender from Mannesmann's board. My guess is, that they're playing the for more time, which means the want to boost their stockprice and on the other hand want investors to worry about VOD's financial conditions. VOD can't make a cash offer, if Mannesmann's price moves so high (german fund managers demand 270 - 300 Eur per share which might be too expensive for VOD), that an aquisition would heavily dilute VOD's earnings, VOD's board would face critics from institutional investors. Mannesmann know's that a high stock price is VOD's currency and they want to get that down. Mr. Gent made a big mistake by approaching Mannesmann, he should better have looked at other buying opportunities. Regards Kai P.S.: As I said, I'd like such a deal, but I know that most people here in Germany are not thinking the same way. If you're living your whole life in a country like this, you'll know how things are going, but as an American these people are rather hard to understand.