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

To: MrGreenJeans who wrote (2846)	6/3/2000 9:14:00 PM
From: MrGreenJeans	Read Replies (1) \| Respond to of 3175

British telecoms duo link in Spanish deal John Jay and John Waples TALKS between British Telecommunications and Vodafone AirTouch about a plan for the two companies to take full control of Airtel, Spain's second-largest mobile telephone company, are close to being concluded. Under the deal being discussed, BT and Vodafone would jointly own the Spanish company, buying out BSCH, the Spanish bank that owns 30% of the equity and a group of smaller shareholders. Vodafone already owns 22% of Airtel and BT owns 18%. Vodafone also has a "put" option with some of the shareholders to buy their combined 16.9% stake should they decide to realise their investments. But there are complex shareholder agreements that could involve such shares being offered to other equity owners. Initially it was thought that BT would withdraw from Airtel, leaving Vodafone the dominant force within the company. But more recently the two companies, rivals in so many territories, have decided to co-operate. Some observers believe an announcement could be made as early as this week but others think a transaction will not be unveiled until later in the month. BT originally paid about œ250m for its Airtel stake but the deal in which it and Vodafone take full control is likely to value the business at about œ15 billion. The BT push to own an eventual 50% of Airtel is part of a broader overseas expansion push by Sir Iain Vallance, the chairman, and Sir Peter Bonfield, chief executive. Wherever possible, they are aiming to increase BT's ownership position in its existing foreign investments and move to full control where they can. This strategy is also likely to be evident in Germany were BT has big growth ambitions. It currently has 45% of Viag Interkom but it is hoping to move to a position of control. Viag is in the middle of merging with Veba to create a company to be known as E.ON. As part of that deal an enlarged telecoms business is being created to be known as Viag Telecom, where BT is negotiating to hold 51% of the equity. In recent months BT has made a number of other European expansion moves. In April it paid œ1.16 billion for the 50% of Telfort, a Dutch telephony business, it did not own. Three months previously it made an agreed œ1.5 billion bid for Esat, a provider of data, internet and voice telephony in Ireland