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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (11053)	5/1/1999 9:14:00 AM
From: zbyslaw owczarczyk	Read Replies (1) \| Respond to of 18016

DT and TI Approached by U.S., English Companies, Il Sole Says Rome, May 1 (Bloomberg) -- Deutsche Telekom AG, Europe's No. 1 phone company, and Telecom Italia SpA, Italy's largest phone company, were approached by a U.S. and an English company about forming an alliance should their proposed merger succeed, financial daily Il Sole/24 Ore reported, without citing sources. Ron Sommer, Deutsche Telekom's chief executive, said the two phone companies reached an agreement whereby any changes to their new merged company's statute would need the support of 90 percent of shareholders to take effect. The ''super-clause'' to the statute is designed to reassure the Italian government -- which has the right to block any change of management at Telecom Italia -- that the new company won't be controlled by the German government, which still holds a 72 percent stake in Deutsche Telekom, the newspaper cited Sommer as saying. Telecom Italia is the target of a $65 billion hostile bid comprised of cash, bonds and stock from Olivetti SpA and a friendly all stock $94 billion offer from Deutsche Telecom. 1(Il Sole/24 Ore, 5/1 25; www.ilsole24ore.it) NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min. Telekom Says Won't Merge With Telecom Italia if Olivetti Wins Rome, April 30 (Bloomberg) -- Deutsche Telekom AG will abandon plans to merge with Italy's Telecom Italia SpA if a separate takeover offer by smaller rival Olivetti SpA succeeds, Deutsche Telekom's Chief Executive Ron Sommer said yesterday evening during a meeting with Italian newspaper editors, news agency Ansa reported. ''I have not even considered that our project to merge with Telecom Italia will not be the winning one,'' said Sommer, who is in Rome for talks with Telecom Italia's CEO Franco Bernabe, ''the Olivetti offer is something else; they need money and have made a curious offer'' and they will not even be able to pay out dividends. Addressing criticism that the German government has not yet established a clear timetable for selling its stake in Telekom, Sommer said that ''if Bonn decided today to set the timetable and spell out the type of privatization, everyone would start arbitraging on the stock exchange,'' Ansa reported. The Italian government, which has the right to block any changes in ownership at Telecom Italia, has yet to give its consent for the merger with Deutsche Telekom and its currently reviewing legislation on the special powers it keeps on companies it once owned, the so-called golden share. (Ansa, 04/30) (www.ansa.it) NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min.