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

To: MrGreenJeans who wrote (2495)	2/3/2000 10:11:00 PM
From: MrGreenJeans	Read Replies (1) \| Respond to of 3175

FT 2/4 Gentlemen's agreement Cold towels and hot coffee surely played a part, but the last-minute deal being negotiated between Vodafone AirTouch and Mannesmann is a demonstration of - and a victory for - shareholder power. It was investor pressure that forced Klaus Esser, Mannesmann chief executive, to the negotiating table. And however reluctantly he came, in the end, what he achieved stands to do his shareholders proud: squeezing a further 10 per cent increase in the bid's value out of Vodafone. Though Mannesmann would contribute just 31 per cent of this year's earnings before interest, tax, depreciation and amortisation (ebitda), its owners would end up with 49.5 per cent of the enlarged company. Similarly, Chris Gent, his opposite number at Vodafone, has responded to investors' concerns by taking on board much of Mannesmann's strategy and management. Add Vodafone's global reach and a $350bn-plus market capitalisation - putting it in the global top five - and the enlarged group will have enormous potential. The quicker its managers now get back to running the business, the better their chance of fulfilling it. Two other thoughts stand out. First, that a takeover battle of this size and passion has been fought cleanly and fairly is a big step forward in establishing open markets for corporate control across Europe in general and Germany in particular. Second, this bid has helped push telecommunications valuations to new highs, with a combined Vodafone/Mannesmann now trading on around 56 times prospective ebitda. If Vodafone can hang on to that sort of rating, shareholders really will have a victory to enjoy.