Vodafone AirTouch plc last week continued its efforts to win support for its hostile takeover bid for Germany’s Mannesmann AG. At the same time, Mannesmann executives began a road show aimed at convincing shareholders to reject the bid.
Mannesmann has been bolstering its defenses since Vodafone launched its $128 billion hostile takeover bid for the company Nov. 19. Mannesmann rejected an earlier friendly offer of $106 billion.
Mannesmann’s supervisory board last week supported the company’s executive board in its rejection of Vodafone’s hostile takeover attempt.
Some analysts have indicated there is no clear winner yet in the struggle between Vodafone and Mannesmann. The Financial Times, however, reported 40 percent of Mannesmann’s shares are owned by Vodafone shareholders, which could tip the scales in favor of the U.K. company.
Vodafone Chief Executive Officer Chris Gent has been meeting with investors in Europe and the United States, hoping to garner support for his company’s bid for Mannesmann. Gent said he is receiving positive responses from both Vodafone and Mannesmann shareholders.
Meanwhile, Mannesmann’s CEO Klaus Esser, who also met with investors in Europe and the United States last week, expressed confidence in Mannesmann’s ability to fend off Vodafone’s hostile bid.
“We will win because we have the superior argument,” Esser told investors and analysts, according to an Associated Press report. “We have to wait calmly while the arguments are being understood.”
Esser, according to AP, is emphasizing Mannesmann’s projections for 30-percent annual growth, while criticizing Vodafone’s emphasis on the U.S. market.
Vodafone responded to Mannesmann’s arguments by saying, “We share in Mannesmann’s excitement about the growth opportunities facing our industry. Mannesmann has not advanced any argument that contradicts our view that we can capture more of this growth together.”
