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Mannesmann seeks help
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November 29, 1999: 8:38 a.m. ET
CEO Esser visits shareholders, explains defense against Vodafone bid
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LONDON (CNNfn) - Mannesmann boss Klaus Esser kicked off a whistle-stop tour of 20 cities in London Monday, determined to persuade key shareholders not to back Vodafone Airtouch’s hostile approach for his company, the world's largest takeover bid.
Esser, Mannesmann's chief executive and guiding force, met financial institutions in London Monday, bolstered by the news over the weekend that the Mannesmann supervisory board had backed his aggressive rebuttal of the $130 billion takeover offer from Vodafone.
The supervisory board said it "unanimously supports the decision of the executive board to oppose the hostile takeover attempt."
As part of the defense campaign, Esser is visiting shareholders to convince them of Mannesmann's standalone potential, and to that end the company made a series of bullish growth forecasts Monday.
Mannesmann predicted operating earnings would grow by around 30 percent annually between 2000 and 2003. It backed that up with nine-month earnings figures showing underlying growth of 50 percent so far this year.
Mannesmann shares rose 1.4 percent in Frankfurt Monday to 204.90 euros, well short of the Vodafone offer at around 253 euros per share. The discount reflects market skepticism that the deal will be realized, including the risk that antitrust watchdogs may have a significant influence.
Esser's tour of 20 cities over the next two weeks coincides with Vodafone CEO Chris Gent's latest visit to the United States. He will try to persuade Mannesmann shareholders, of whom more than half are based overseas, of the merits of his ambitious offer.
There was some consolation for the Vodafone boss in that Esser's comments over the weekend appeared to indicate a slightly less antagonistic attitude, with the German boss indicating he thought the two companies could continue their relationship in two lucrative German and Italian cellular operators.
Mannesmann is playing up the differences between its strategy and Vodafone's plans. In particular, these center on linking fixed-line and wireless services, whereas Vodafone wants to concentrate purely on cellular services.
Mannesmann appears to be getting some support from labor unions in the United States.
The AFL-CIO sent letters to pension funds with holdings in Mannesmann urging them to reject the Vodafone offer, the Wall Street Journal reported Monday. The labor federation expressed concern that a takeover by the British company could end the German tradition of giving workers substantial say in the operations of the company. 
-- from staff and wire reports
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