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Mannesmann eyed for bid
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November 8, 1999: 4:04 a.m. ET
Reports: Vodafone expected to make offer with France Telecom's help.
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LONDON (CNNfn) - The battle for cellular dominance in Europe heated up Monday, following reports that Vodafone AirTouch is poised to pounce on German rival Mannesmann, and has been offered support by France Telecom to aid what would be a $74 billion takeover.
U.K. press reports suggest Vodafone (VOD), the world's largest cellular operator, is close to launching an offer for Mannesmann (FMMN) to strengthen its grip in Europe.
Mannesmann is in the process of acquiring Orange (ORA), a direct U.K. rival to Vodafone, for about $36 billion. While U.K. antitrust watchdogs wouldn't let Vodafone own a second British cellular operator, the Financial Times reported Monday that France Telecom has indicated it is keen to buy Orange from Vodafone, assuming the U.K. firm goes ahead with a bid for Mannesmann.
Analysts have repeatedly predicted a robust response from Vodafone to the Mannesmann/Orange deal.
The FT reported that advisers to Vodafone are mulling two options: whether to launch an offer for the whole of Mannesmann, and then sell on Orange for a prearranged price, or to encourage France Telecom to make a counterbid for Orange, allowing the Mannesmann offer to be withdrawn.
Mannesmann shares have endured a difficult time since the Orange offer was unveiled, with shareholders abandoning the stock on fears the offer is overpriced.
The rationale for a combined Anglo-French attack on Mannesmann stems from Vodafone's desire for D2 and Omnitel, two of continental Europe's largest cellular networks, and France Telecom's enthusiasm to break into the fast-growing U.K. telecom market. The state-controlled company has already teamed up with the U.K.'s largest cable operator, Telewest (TWT).
Mannesmann shares gained  2.9, or 1.8 percent, to 164.20, while Vodafone dipped 0.6 percent to 315 pence. 
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