LONDON-Mannesmann AG is stepping up its defense against Vodafone AirTouch plc’s $128.7 billion hostile takeover bid. Klaus Esser, Mannesmann chairman, is warning investors of potential risks, the Financial Times reported.
Esser said Vodafone AirTouch may need as much as $60 billion cash to buy out remaining shareholders if Vodafone claims victory with more than 50 percent of the shares. Mannesmann’s defense document is due by Jan. 14, although the company already has launched a newspaper campaign highlighting the dangers to shareholders.
Mannesmann said a takeover would put Mannesmann’s development on hold for a year while the two companies integrate. In addition, the company said taking management control of Mannesmann could prove difficult without 75-percent ownership.
However, Chris Gent, Vodafone AirTouch chief executive, said he and his executive team have talked with 70 percent of shareholders and believe they will win the battle, according to the report.
