LONDON-Vodafone AirTouch plc acknowledged speculation circulating last week that it was interested in making a bid for Germany’s Mannesmann AG and hinted that a future tie-up of the two could occur.
“Vodafone AirTouch and Mannesmann are long-standing partners in three of Europe’s largest wireless markets through D2 in Germany, Omnitel Pronto Italia in Italy and SFR in France,” said a statement released by Vodafone AirTouch. “Further development of these businesses remains an important strategic priority.
“Vodafone AirTouch continues to evaluate a broad range of opportunities to participate in the further consolidation of the global wireless market, including possible ways to develop Vodafone AirTouch’s existing long-standing relationship with Mannesmann,” said the statement.
Vodafone went on to say the company would only consider a merger or acquisition that would add value for its shareholders.
Published reports last week speculated Vodafone AirTouch was considering launching a hostile takeover of Mannesmann, which currently has a deal on the table to acquire Orange plc of the United Kingdom. Vodafone AirTouch’s stock suffered in Europe late in the week on worries that the $100 billion it could pay to acquire Mannesmann is too high.
Separately, France Telecom could be interested in buying Orange if the Mannesmann-Orange deal falls through, said the Financial Times.
If Vodafone AirTouch goes after Mannesmann, Vodafone AirTouch would have to sell off Orange because it is already a direct competitor with Orange in the U.K. wireless market.
