GERMANY: VODAFONE CLAIMS SUPPORT

Article Abstract:

Anglo-American mobile giant, Vodafone, has claimed that a shadow book poll has indicated sufficient investor support to gain 50.1% of Mannesmann and that it will win its GB[pound] 88bn hostile takeover of the German telecoms and engineering company.

Foreign operations, Vodafone Group PLC

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Creating the marketplace is more important than managing a factory

Article Abstract:

The decision by German concern Mannesmann to bid for Orange raises broad questions about the nature of foreign investment in the UK. In particular, consideration must be given to whether management control is more important than ownership. In some cases, loss of management control to a foreign purchaser can be beneficial, allowing the vendor to obtain money while avoiding management problems. If management is more important than ownership, then there would be significant long-term implications for the rising proportion of UK business activity owned abroad.

Administration of General Economic Programs, Foreign Investment Regulations, Analysis, Foreign investments, Column, Orange PLC, Foreign investment laws

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GERMANY/UK: EU WARNING ON VODAFONE'S BID

Article Abstract:

The European Competition Commissioner Erkii Liikanen has warned that Vodafone AirTouch's takeover of Mannesmann will not be approved unless it can demonstrate the wider benefits to consumers. Mr Liikanen's comment may signify that the EU is adopting a stricter policy towards takeovers, and will block them if they are anti-competitive. However, Vodafone and Mannesmann actually compete in very few areas. Vodafone's chief executive Chris Gent has claimed that he is on track for victory. Between 20% and 25% of Mannesmann shareholders had been approached, Mr Gent said, and they were strongly interested in the offer.

Telecommunications, Vodafone AirTouch PLC

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