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

To: MrGreenJeans who wrote (2497)	2/3/2000 10:21:00 PM
From: MrGreenJeans	Read Replies (1) \| Respond to of 3175

Vodafone-Mannesmann sign record œ225 bn deal BY CHRIS AYRES MEDIA BUSINESS CORRESPONDENT Links VODAFONE AIRTOUCH, the British mobile phone operator, last night agreed a œ225 billion mega-merger with Germany's Mannesmann, which will transform it into Europe's largest company. The deal, announced at 9.30pm after more than seven hours of frantic negotiations, is the biggest in the world, surpassing even America Online's œ220 billion merger with Time Warner. It comes after a three-month hostile takeover battle by Vodafone. After its acquisition of Mannesmann, Vodafone will have 42.4 million customers in 25 countries. It is understood Klaus Esser, Mannesmann's chairman, entered talks with Chris Gent, Vodafone's chief executive, after it became apparent the British company was set to win. Herr Esser put out a curt statement last night saying: "[The] agreement reflects the preference of the majority of [Mannesmann's] shareholders." Vodafone, advised by Goldman Sachs, will offer 58.96 of its own shares for every Mannesmann share, giving the German company's investors a 49.5 per cent stake in the enlarged company. Vodafone's previous offer gave them a 47.2 per cent stake. One source close to the negotiations said the deal was a "crashing defeat" for Herr Esser. However, when Vodafone launched its hostile bid in November, the German company's share price was just euro155 (œ96). The agreed deal is likely to value Mannesmann shares at euro353. It is understood that Herr Esser will be given an executive directorship of the new company and will oversee its integration with Vodafone. He will subsequently become non-executive chairman, sources said. He has also won several key concessions. These include a promise to locate half of Vodafone's European headquarters in Dusseldorf, and that Vodafone will not sell Mannesmann's Arcor and Infostrada fixed-line telephone businesses. Orange, the British mobile phone group bought by Mannesmann last year, will be re-listed on the London Stock Exchange. Its shares will be handed directly back to Vodafone and Mannesmann shareholders. However, Orange is likely to be quickly acquired by either France's Vivendi or KPN of The Netherlands.Orange's relisting will also see Hans Snook, the chief executive, return to centre stage in the UK mobile phone market. City analysts were reluctant to comment before a deal had been signed, but most suggest that Vodafone was right to pay more to secure a recommendation from Mannesmann. In particular, it will prevent Vodafone from becoming embroiled in a legal dispute with German shareholders over the disposal of Orange. It will also prevent the enlarged company from being damaged by the loss of senior executive managers such as Herr Esser. Shares in Vodafone fell 17p to 368«p yesterday - after an extraordinary performance during the week. Mannesmann shares, meanwhile, rose euro« to euro325«. Mannesmann sources said it was the strong rise in Vodafone's shares this week that ultimately led Herr Esser to agree a takeover deal.