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Vodafone CEO argues case
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January 18, 2000: 10:50 p.m. ET
Chris Gent tells Mannesmann shareholders to think globally
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NEW YORK (CNNfn) - German cell phone firm Mannesmann has spurned an offer from Vodafone AirTouch -- touching off a massive hostile bid that is being voted on by Mannesmann shareholders.
Chris Gent, chief executive officer of Vodafone AirTouch, shared his thoughts on the Moneyline News Hour.
CO-HOST STUART VARNEY: Am I right in saying that by Feb. 7, Mannesman shareholders have to decide do they want 100 percent of Mannesmann status quo or 47 percent of the combined company? That's the choice they face by that date, correct?
CHRIS GENT: Absolutely right, yes. I mean, we're saying tender early, because this has never been done in Germany before.
VARNEY: You've got 30 seconds to convince our audience that they should go with you.
GENT: Well, putting the two companies together builds a European-based world leader, and on the strategic rationale it's compelling. But so far as Mannesmann shareholders are concerned, getting 47 percent of that combined group means they get more profit growth than they could ever manage on their company alone.
VARNEY: Now, you're in New York and you're addressing some large institutional investors who own a large chunk of Mannesmann and you're trying to convince them to go with your deal. Doesn't that raise a cultural issue? Here you've got a major German company with its business being dictated by Americans.
GENT: Yes, but that's the point: It's a shareholders decision, and 60 percent of Mannesmann shareholders are outside of Germany. In fact, if you count Hutchison, it's 70 percent outside of Germany. And that's point we're making to them: This is a global market. This is why it's a globally held company. And our case is a compelling one for global investors.
VARNEY: Do you have to be global in this particular business, mobile phones?
GENT: Absolutely. With mobile phones, our customers can go anywhere in the world. It's more important in fact to be global in this business than it will be in the fixed business.
VARNEY: Can I ask what response you've gotten so far from institutional investors in America?
GENT: Well, they see the compelling strategic case for putting the business together and I think they like our commercial proposition, the economic proposition. And you're seeing the rise in our share price, I think indicates the market likes this deal.
VARNEY: Is there some ego involved here, because Klaus Esser, who's chairman of Mannesmann, you've had some somewhat frosty meetings. Is it difficult to get a deal going, two powerful people going at it?
GENT: Well, the meetings have been courteous, but he wants to be independent above all. And we're saying his shareholders should decide do they want a European regional player or a global player. And that's the choice we're putting before the Mannesmann shareholders.
VARNEY: At the end of the day, do you think that you can convince overseas shareholders to go with your deal?
GENT: I believe we'll get the vast majority of the international shareholder base and good support in Germany as well, because they see the sense of creating this European-leading, world-leading company.
VARNEY: We'll look forward to the outcome Feb. 7, if not before. Chris Gent, a pleasure to have you with us. Thank you. 
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