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

To: MrGreenJeans who wrote (2983)	10/5/2000 7:54:31 AM
From: MrGreenJeans	Read Replies (1) \| Respond to of 3175

COM) 05/10/00 10:26: STOCKWATCH: Vodafone climbs as analysts acclaim China deal, subscriber numbers STOCKWATCH: Vodafone climbs as analysts acclaim China deal, subscriber numbers LONDON (AFX) - Vodafone Group PLC found itself sharply higher in morning trading as brokers acclaimed the operator's deal with China Mobile and said yesterday's subscriber numbers for the third quarter showed there was still room for growth in the European market. At 10.20 am, Vodafone was up 10-1/4, or 4.2 pct, at 260, just off the high for the day so far of 261-1/2 on a volume of 51.2 mln shares traded. The China deal, whereby Vodafone is to spend 2.5 bln usd in cash on a 2 pct stake in China Mobile, by far the market leader and government favourite in mainland China, "is symbolic and a stepping stone for Vodafone into one of the great remaining untapped mobile markets," said Andrew Beale at Deutsche Bank. With the company gaining 6.16 mln net new users, above the bank's estimate of 5.7 mln, "Vodafone remains undervalued and well financed compared with other European telcos," he said. Beale said the bank estimated the implied valuation of the deal to have an EV/EBITDA multiple of 17.7x, with an EV/subscriber of 2,737 usd. "Over time and as the Chinese market liberalises, we see Vodafone seeking to build its interest in the company, although we expect this to be a long-term process," he said. As another broker close to the company commented: "This is deeply symbolic of the scale and scope of Vodafone. The rest of the industry is scrabbling for funds, and yet Vodafone can go in and offer 2.5 bln usd in cash." Deutsche Bank's Beale was also positive on user figures, which saw Vodafone's UK market share of additional customers in the quarter rise to 23 pct from 17 pct last time with a higher proportion of contract customers. The rest of Europe, especially Germany, was also strong, he said, although Asia Pacific growth was a little weaker due to a slow summer market in Japan and declining subscription numbers in Korea after the government stopped operators from subsidising handsets for new users.