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To: The Verve who wrote (52120)	12/1/1999 1:15:00 AM
From: Ruffian	Respond to of 152472

Vodafone's Mannesmann Bid Gets Support From Several Investors By SARA CALIAN and ANITA RAGHAVAN Staff Reporters of THE WALL STREET JOURNAL LONDON -- Several of Mannesmann AG's investors are backing Vodafone AirTouch PLC's 127.6 billion-euro ($128.76 billion) hostile offer, even as the German telecommunications company is working feverishly to fight off a bid from the United Kingdom mobile-phone operator. As Mannesmann's chief executive officer, Klaus Esser, went on the road this week to persuade investors to vote against the hostile takeover, many fund managers were already supporting the Vodafone bid. "The Mannesmann defense hasn't set a fire and has not won the day so far," said David Stevenson, an Edinburgh-based fund manager at Scottish Value Management, which owns sizable positions in both Vodafone and Mannesmann. He said a combined company would be a much better European investment than owning the stocks individually. "And the deal is a must-have for Vodafone, which would otherwise be squeezed out of key European markets," he said. Other fund managers agreed, saying the strategic value of the deal outweighs any dilution that shareholders would suffer. "We would vote in favor of the deal at this point," said Graeme Kyle, an Edinburgh fund manager at Scottish Equitable PLC, which owns about 1% of Vodafone and 0.5% of Mannesmann. "It's a good strategic merger that makes a lot of industrial logic, especially for roaming. You can take your [mobile] phone abroad and can automatically connect." The combination with Vodafone would create a wireless behemoth, but Mannesmann says in its defense that it prefers a strategy of investing in both wireless and fixed-line businesses. By comparison, Vodafone prefers a wireless-only approach. To be sure, there are some big Mannesmann shareholders who are backing the German company. Hutchison Whampoa Ltd., which owns 10% of the combined Mannesmann and Orange PLC group, has recently supported the German company's rejection of Vodafone's offer. Mannesmann employees are also expected to back management. Scottish Equitable's Mr. Kyle worries that the largest hostile deal in Europe could become ugly. "I don't want to see Mannesmann making a dirty defense -- they might buy some fixed asset lines in Europe and would deter Vodafone," he said. Indeed, like many other fund managers, Mr. Kyle is comfortable with the per-share price of 250 euros for Mannesmann, but would rather see Vodafone sweeten the offer with cash rather than boosting the bid with stock. His comments were echoed in Germany, which is becoming a pivotal battle ground for Vodafone and Mannesmann. "We are waiting to see Mannesmann management later this week, but we are currently in favor of the merger," said Frank Heise, a fund manager at Union Investment Gesellschaft in Frankfurt. "The price is not as important as the currency. We prefer cash." In trading Tuesday, Vodafone's stock was unchanged at 295.25 pence ($4.72) a share, while Mannesmann's stock rose 2.4%, or 1.45 euros, to 206.40 euros. The spread -- or gap -- between the value of the Vodafone bid and the level at which Mannesmann's stock is trading at has narrowed in the past week by more than 10%, suggesting that investors are more convinced that the deal will go through.

To: The Verve who wrote (52120)	12/1/1999 1:35:00 AM
From: Uncle Frank	Read Replies (2) \| Respond to of 152472

>> ...isn't it dumb NOT to be bold? There's a line that each of us has to draw between bold and reckless, Ron. I use derivatives to juice my return, but in times of uncertainty, I retreat to a ltb&h stance. Does selling my January calls constitute timidity? My portfolio is now weighted 77% Q and Q LEAPS. The analysis we've done on the g&k thread confimed Q's pongid nature months ago; it's no longer an issue. Long term you will prosper if you hold Q. Short term you are at the market's mercy. jmho unq