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Vodafone mulls sweetener
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January 20, 2000: 4:34 a.m. ET
CEO Gent considers raising hostile $156B Mannesmann bid
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LONDON (CNNfn) - Vodafone AirTouch boss Chris Gent indicated he is prepared to raise the value of his company's hostile offer for Germany's Mannesmann, according to reports Thursday, although he will only do so if Mannesmann's management supports the deal.
Vodafone has offered 53.7 of its shares for each Mannesmann share, in an offer valued at 154 billion euros ($156 billion), or 297 euros per Mannesmann share. The deal would be the world's largest hostile takeover.
Mannesmann stock rose 3 percent Thursday to 276 euros, while Vodafone dipped 1.3 percent to 341 pence.
Gent, Vodafone's chief executive, was reported to be ready to consider a modest increase in the offer, as long as Mannesmann drops its opposition to a deal.
The Financial Times reported that Vodafone is also willing to make concessions on management and strategy issues if Mannesmann agrees to enter talks on a deal, although an earlier offer to offer Mannesmann CEO Klaus Esser the role of CEO in the enlarged company had been withdrawn.
Esser ruled out any change to his earlier stance, however. The valuation that Vodafone puts on the German group appears to remain the major sticking point between the companies, with neither willing to cede control of an enlarged company to the other group's shareholders.
Vodafone's Gent indicated he would not go beyond offering Mannesmann shareholders 48.9 percent of the enlarged firm - while the current offer implies they would get 47.2 percent. Esser is demanding at least 58 percent for his shareholders.
The latest shot from Gent came during a visit to New York to woo Mannesmann investors - a significant number of whom are based in the United States.
Vodafone's offer closes on Feb.7, and until then both sides are expected to continue the propaganda war. 
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Vodafone AirTouch
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