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

To: MrGreenJeans who wrote (2862)	6/12/2000 7:26:00 AM
From: MrGreenJeans	Read Replies (1) \| Respond to of 3175

Vodafone takes biggest slice of Spain's Airtel (UPDATE: adds share prices, background, valuation, previous LONDON) By William Schomberg MADRID, June 12 (Reuters) - British Telecommunications Plc (quote from Yahoo! UK & Ireland: BT.L) and cellphone giant Vodafone AirTouch Plc (quote from Yahoo! UK & Ireland: VOD.L) said on Monday they had settled a dispute over Spain's number two mobile operator Airtel, with Vodafone taking control of the company. Ending more than a year of wrangling over Airtel, in which both British companies already own stakes, BT said it would back any move by Vodafone to raise its holding to 55 percent. In return, Vodafone has agreed that if it increases its stake to more than 55 percent, both British groups will have equal representation on the board of a company that has been valued at up to 30 billion euros ($28.6 billion). BT also has an option to acquire any excess in the group, the two companies said in statements. ``Spain is one of Europe's fastest-growing mobile markets,'' said Vodafone's Chief Executive Chris Gent. ``Today's announcement...will further strengthen Airtel's position in the market and enhance the company's future growth prospects.'' Spanish newspaper Expansion said Airtel's valuation had been raised to about 30 billion euros to reflect the value of a coveted Universal Mobile Telecommunication System (UMTS) mobile licence for third generation wireless services in Spain. Airtel's revenues last year totalled 333.4 billion pesetas ($1.9 billion) and earnings before interest, tax, depreciation and amortisation were 75.4 billion. Relief at the long-expected deal helped send Vodafone's shares 2.3 percent higher to 319-1/4p by 0835 GMT, while BT climbed 0.6 percent to 988p. ``This removes a lot of uncertainty over the situation with Airtel, and it's more in BT's favour than expected,'' said ABN AMRO analyst James Ross. ``BT gets a lot of management control.'' AIRTEL THE DOOR ON LATIN AMERICA? Airtel might also offer Vodafone and BT a door into Latin America, analysts have said. BT currently owns a 17.8 percent stake in Airtel. Vodafone has 21.7 percent and has long been looking to buy the 30.45 percent stake owned by Banco Santander Central Hispano , Spain's biggest bank and Airtel's biggest shareholder. BSCH -- a major force in Latin America -- has said it wants to remain exposed to the booming mobile phone market and would swap its Airtel stake for shares in another mobile company. Analysts have expected it to take around three percent of Vodafone, the world's biggest mobile phone company. BSCH is believed to be seeking a major mobile phone partner after rival Banco Bilbao Vizcaya Argentaria struck a wide-ranging strategic alliance for e-business and mobile telephony with powerful Spanish telecoms group Telefonica that would cover Europe and Latin America. No one was immediately available at the bank for comment. Airtel had some six million customers at the end of March -- or around a third of the Spanish market -- and has introduced fixed-line telephony and Internet products as part of a strategy to use its wireless customer base to become a full service telecommunications company. Vodafone and BT also said they signed a commercial agreement setting out how BT's wholly owned subsidiary, BT Tel, will work with Airtel to provide a range of services to BT Tel's Spanish business customers. (Additional reporting by Louise Ireland and Daren Butler in London) ($1=175.05 Peseta)