Feeds

Mannesmann rejects Vodafone's £64bn bid

Offer cools relationship, hostile bid expected as a result

  • alert
  • submit to reddit

Build a business case: developing custom apps

Mannesmann has strongly rejected a £64 billion takeover bid from Vodafone, delivered in person by the company's chief executive. The German giant described the bid as "wholly inadequate" and "extremely unattractive", paving the way for a hostile bid, expected shortly. Vodafone is keen to get its hands on Mannesmann, which is in the process of acquiring Orange for £20 billion. Aside from the German firm's unwanted intrusion into the UK market, Vodafone wants its German, French and Italian franchises to strengthen its own position across Europe. However, with the "unsolicited" proposal rejected out of hand, Vodafone has little choice but to go for a hostile bid – something not made easier by the stolid German market which has never seen a successful hostile takeover. Despite a number of others big companies, including BT, Bell Atlantic and SBC, reportedly offering Mannesmann a safe exit through friendly mergers, it seems determined to stay the course. Whether the ballsy approach – which has included strong words, personal pledges and an arrogant self-valuation at double current share price – pays off, only time will tell. Vodafone's chances of success are slipping – made clear by a big drop in its share price. Even if it did manage to buy Mannesmann, it would have to sell Orange, and almost certainly at a loss. With the mobile market set to explode in the next few years, if Mannesmann can keep hold of its independence the opportunity to acquire it may never happen again. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.