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

To: Chuzzlewit who wrote (2486)	2/3/2000 4:39:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 3175

URL: cbs.marketwatch.com Vodafone-Mannesmann friendly deal seen By Gareth Vaughan, CBS MarketWatch Last Update: 4:20 PM ET Feb 3, 2000 NewsWatch DUESSELDORF (CBS.MW) -- Mannesmann AG, which has fiercely fought Vodafone AirTouch PLC's record-breaking hostile takeover bid for three months, said Thursday the two companies are now in talks that might lead to a friendly tie-up. Mannesmann's supervisory board was meeting to discuss Vodafone's approach on Thursday, but no news had emerged by the time U.S. markets closed at 4 p.m. Eastern time. Yet according to press reports, the board will vote on a friendly deal with Vodafone that would give the German company 49.5 percent of the combined group. Under the terms of Vodafone's hostile offer, Mannesmann would make up 47.2 percent of the combined group. Both companies released statements saying the German telecom and engineering group's executive board has begun talks with the board of Vodafone (VOD: news, msgs), which may or may not lead to a recommended offer being made by Mannesmann's board to its shareholders. In U.S. trading, Vodafone fell 1 1/2 to 61 1/2. In London trading, shares of Vodafone ended 13.75 pence, or 3.6 percent, lower at 371.75, while in Frankfurt Mannesmann shares added 0.50 euro to 325.50. On Wednesday, shares of Vodafone jumped 25.5 pence, or 7.1 percent, to 385.5 lifting the value of its all stock offer for Mannesmann to 344 euros per share. Previously Mannesmann's chief executive Klaus Esser has rejected Vodafone's bid as undervaluing Mannesmann and being unsuitable from a strategic perspective. Esser has put a valuation on Mannesmann of 350 euros per share. The total value of the offer -- the biggest hostile takeover bid ever -- which runs until Feb. 7, is now roughly 178 billion euros ($173.14 billion). Vodafone has offered 53.7 new Vodafone shares for each Mannesmann share. In Frankfurt trading Wednesday shares of Mannesmann surged 28.7 euros, or 9.7 percent, to close at 325. Last Sunday Vodafone announced a European Internet deal with French conglomerate Vivendi SA which is subject to the British cellular phone giant winning its battle for control of Mannesmann. See full story Meanwhile, Germany's Handelsblatt business newspaper reported that Mannesmann came close to buying a 45 percent stake in AOL Europe, the continent's No. 2 Internet service provider, before two key supervisory board members urged a friendly deal with Vodafone earlier this week.

To: Chuzzlewit who wrote (2486)	2/3/2000 6:02:00 PM
From: MrGreenJeans	Read Replies (1) \| Respond to of 3175

C Vodafone retains the majority of the combined company and I assume, but have not read, they retain board control. These two features are most important. Now Vodafone has to make this combination work. Index funds are underweighted and portfolios must be realigned. I assume the price goes up, then meanders for awhile back down, then off to the races in a manner of speaking as the new more powerful combination emerges and investors appreciate what has happened.