Europe heads toward a telecom megamerger; Spain's Telefonica is in talks for a deal valuing KPN at over $60 billion

Article Abstract:

Latin America's biggest telecommunications company, Telefonica S.A. of Spain is planning to merge with Dutch company Royal KPN N.V. The planned merger would create the third largest phone company in number of subscribers in Europe. KPN, which offers wireless and data services, is also planning a European data network in an agreement with Qwest Communications International Inc. of the US.

Netherlands, Spain, Telefonica S.A., Royal KPN N.V.

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Tidal wave of global telecom offerings builds; but will there be enough capital to fund flood of privatizations?

Article Abstract:

The telecommunications industry is beginning a huge round of sell-offs as governments privatize their national telephone monopolies. About 60 carriers are expected to sell off part of their holdings, raising an estimated $70 billion within the next two years. Germany's Deutsche Telekom is selling up to $12 billion in shares, in what is the largest privatization in Europe's history. Most nations will retain a controlling interest in their phone companies. The trend is in response to deregulation in international phone markets, and the corresponding entry of competition in these markets. Investors may not see these companies as an attractive opportunity because they are inefficient and their growth rates are mediocre at best. The plethora of offerings will bring intense competition for investors' dollars. Deutsche Telekom's offering has already affected industry stock prices.

Finance, Forecasts and trends, Industry trend, Initial public offerings, Company public offering, International communication, International communications

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Vodafone to sweeten Mannesmann offer; German company's board to receive bid Friday of up to $120.59 billion

Article Abstract:

London, England-based Vodafone AirTouch PLC is planning to boost its takeover bid for German telecommunications company Mannesmann AG. Vodafone's previous takeover offer of $107 billion was rejected by Mannesmann. If this second bid by Vodafone, which will be presented to Mannesmann's board on Nov. 19, 1999 is also rebuffed, Vodafone will launch a hostile takeover attempt. Investors in Vodafone, worried about the company's sweetened offer, have sold-off shares. Vodafone's declining share price will make its takeover attempt more challenging. Mannesmann's management has expressed the hope of keeping the company independent but Vodafone would like to add Mannesmann's services, especially its wireless services, to help the company gain more of a foothold in continental Europe. Mannesmann's CEO Klaus Esser has said he is open to a sweetened bid and that if Mannesmann had to merge, Vodafone would be a good company with which to align itself. Vodafone CEO Chris Gent is wary of trying to negotiate with Mr. Esser. If the two companies merge, the merged entity would be the world's largest provider of wireless telephone services.

United Kingdom, Germany, Radiotelephone communications, Cellular Mobile Radio Services, Cellular and Other Wireless Telecommunications, COMMUNICATION, Communications, Broadcasting and Telecommunications, Cellular telephone services industry, Cellular telephone services, Mannesmann AG, Vodafone AirTouch PLC

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