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Deutsche targets another?
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April 19, 1999: 4:46 a.m. ET
Report: Telekom adds $18B cellular bid to wish list; Telecom Italia talks progress
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LONDON (CNNfn) - Deutsche Telekom emerged as a front-runner to buy the One2One cellular operation from Britain's Cable & Wireless Monday, just 24 hours after the German giant confirmed merger talks with Telecom Italia.
Several newspapers linked Deutsche and fellow German operator Mannesmann Arcor with the U.K. company over the weekend. Joint owners Cable & Wireless (CW.) and MediaOne (UMG) have put the company up for sale with a price tag of around 11 billion pounds ($17.72 billion).
Deutsche Telekom (FDTE) shares climbed Monday after it officially confirmed alliance talks with Telecom Italia. The German company has emerged as a white knight in Telecom Italia's defense against a hostile bid from Olivetti.
Deutsche and its prospective Italian partner were forced to make a statement by the Italian stock market regulator about their plans for a $200 billion merger. Telecom Italia shares were suspended in Milan together with those of TIM, its cellular subsidiary, as the regulator demanded more information.
Deutsche last week announced plans for a rights issue to build up a war chest for future acquisitions. The Telecom Italia deal could be structured as a share swap in which the German firm's shareholders would take a 60 percent stake, according to Frankfurt financial daily Handelsblatt.
Deutsche Telekom shares climbed 1.23 euros to 39.38 euros while Mannesmann (FMMW) stock also climbed 2.44 euros to 119.5 euros.
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