EC Studies BellSouth

Communications Today,  Jan 4, 2000  

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While German telecom regulators have granted Mannesmann [MNNSY] an extra week to prepare a defense against Vodafone AirTouch's [VOD] $148 billion hostile takeover bid, the proposed acquisition of a second German mobile provider, E-Plus, is being considered by the European Commission.

The commission,is conducting a routine inquiry into BellSouth's [BLS] plan to buy an additional 60.25 percent stake in E-Plus from a joint venture of utilities called Veba AG and RWE AG. BellSouth, which already owns 22.5 percent of E-Plus, plans to gain control of Germany's third-largest mobile carrier with an estimated 3.5 million customers in a deal backed with a $9.4 billion loan from KPN Royal Dutch Telecom [KPN].

The commission's decision to approve the deal or extend the inquiry was due a month from Dec. 17, when the deal was proposed. However, with time added on for the Christmas and New Year holidays, a decision is expected around Jan. 26.

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