Outlook: Dear diary, we're winning the mobile bid battle

ONE GLANCE at the astronomic fees Vodafone AirTouch is paying its advisers on the Mannesmann bid explains how Goldman Sachs came to top the European M&A rankings this year. Once upon a time pounds 400m would have been sufficient to acquire a decent-sized company. These days it is barely enough to pay off the investment banks, lawyers and financial PRs once the meter starts running.

Nevertheless, the 46-page offer document that all these bloated fees helped produce is a nifty piece of work. The chronology at the front, detailing how regularly Vodafone and Mannesmann have met up to discuss merger possibilities in the last year, does not exactly help the Germans' case for remaining independent.

Chris Gent's frequent Dear Diary entries, going back to last January, also make it obvious that a bid for Mannesmann was not a knee-jerk reaction to the Germans' acquisition of Orange but part of a thought-out strategy.

The posting of the offer document marks the official start of hostilities and, for the first time, Vodafone is on the front foot. Thus far its performance has been stumbling. It failed to anticipate the degree of political and union opposition in Germany. It antagonised Brussels by declaring that its bid was not conditional on European Commission clearance. It also put a spanner in the Government's timetable for auctioning off third-generation mobile licences.

However, Vodafone has so far managed not to alienate what ought to be the most important constituent in this takeover battle - Mannesmann's shareholders. The narrowing of the gap between the value of Vodafone's offer and Mannesmann's market price, points in the direction of victory for Mr Gent.

He is also helped by Germany's poorly constructed takeover code. This means that most shareholders won't get to read the long list of health warnings contained in the 460-pages of listing particulars. Nor will they need to bother their heads with Vodafone's vague plan about how to deal with Orange, once the takeover is completed.

This being Germany, however, Mr Gent may still be none the wiser as to who is the victor come day 46. The political pressure on Brussels to pack the deal off for a four-month investigation will be intense. Vodafone could yet squeeze around that by sweetening its offer with some cash and gaining a recommendation from the Mannesmann board. But it may be too late for that.

News
More than 90 years of car history are coming to an end with the abolition of the paper car-tax disc
newsThis and other facts you never knew about the paper circle - completely obsolete tomorrow
News
people'I’d rather have Fred and Rose West quote my characters on childcare'
News
Kim Jong Un gives field guidance during his inspection of the Korean People's Army (KPA) Naval Unit 167
newsSouth Korean reports suggest rumours of a coup were unfounded
Arts and Entertainment
You could be in the Glastonbury crowd next summer if you follow our tips for bagging tickets this week
music
PROMOTED VIDEO
News
Swimmer also charged with crossing double land lines and excessive speeding
News
people
News
i100
News
moneyForbes 400 list released
Life and Style
fashion
Arts and Entertainment
Kylie performs during her Kiss Me Once tour
musicReview: 26 years on from her first single, the pop princess tries just a bit too hard at London's O2
News
ebooksAn unforgettable anthology of contemporary reportage
Voices
The erotic novel Fifty Shades of Grey has already been blamed for a rise in the number of callouts to the fire brigade for people trapped in handcuffs
voicesJustine Elyot: Since Fifty Shades there's no need to be secretive about it — everyone's at it
Life and Style
Moves to regulate e-cigarettes and similar products as medicines come amid increasing evidence of their effectiveness
healthHuge anti-smoking campaign kicks off on Wednesday
News
Piers Morgan tells Scots they might not have to suffer living on the same island as him if they vote ‘No’ to Scottish Independence
peopleBroadcaster has a new role bringing 'the big stories that matter' to US
Arts and Entertainment
A new Banksy entitled 'Art Buff' has appeared in Folkestone, Kent
art
Arts and Entertainment
Shia LaBeouf is one of Brad Pitt's favourite actors in the world ever, apparently
filmsAn 'eccentric' choice, certainly
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Trainee Recruitment Consultant - Birmingham - Real Staffing

£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...

Trust Accountant - Kent

NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...

Graduate Recruitment Consultant - 2013/14 Grads - No Exp Needed

£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...

Law Costs

Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...

Day In a Page

Isis is an hour from Baghdad, the Iraq army has little chance against it, and air strikes won't help

Isis an hour away from Baghdad -

and with no sign of Iraq army being able to make a successful counter-attack
Turner Prize 2014 is frustratingly timid

Turner Prize 2014 is frustratingly timid

The exhibition nods to rich and potentially brilliant ideas, but steps back
Last chance to see: Half the world’s animals have disappeared over the last 40 years

Last chance to see...

The Earth’s animal wildlife population has halved in 40 years
So here's why teenagers are always grumpy - and it's not what you think

Truth behind teens' grumpiness

Early school hours mess with their biological clocks
Why can no one stop hackers putting celebrities' private photos online?

Hacked photos: the third wave

Why can no one stop hackers putting celebrities' private photos online?
Royal Ballet star dubbed 'Charlize Theron in pointe shoes' takes on Manon

Homegrown ballerina is on the rise

Royal Ballet star Melissa Hamilton is about to tackle the role of Manon
Education, eduction, education? Our growing fascination with what really goes on in school

Education, education, education

TV documentaries filmed in classrooms are now a genre in their own right
It’s reasonable to negotiate with the likes of Isis, so why don’t we do it and save lives?

It’s perfectly reasonable to negotiate with villains like Isis

So why don’t we do it and save some lives?
This man just ran a marathon in under 2 hours 3 minutes. Is a 2-hour race in sight?

Is a sub-2-hour race now within sight?

Dennis Kimetto breaks marathon record
We shall not be moved, say Stratford's single parents fighting eviction

Inside the E15 'occupation'

We shall not be moved, say Stratford single parents
Air strikes alone will fail to stop Isis

Air strikes alone will fail to stop Isis

Talks between all touched by the crisis in Syria and Iraq can achieve as much as the Tornadoes, says Patrick Cockburn
Nadhim Zahawi: From a refugee on welfare to the heart of No 10

Nadhim Zahawi: From a refugee on welfare to the heart of No 10

The Tory MP speaks for the first time about the devastating effect of his father's bankruptcy
Witches: A history of misogyny

Witches: A history of misogyny

The sexist abuse that haunts modern life is nothing new: women have been 'trolled' in art for 500 years
Shona Rhimes interview: Meet the most powerful woman in US television

Meet the most powerful woman in US television

Writer and producer of shows like Grey's Anatomy, Shonda Rhimes now has her own evening of primetime TV – but she’s taking it in her stride
'Before They Pass Away': Endangered communities photographed 'like Kate Moss'

Endangered communities photographed 'like Kate Moss'

Jimmy Nelson travelled the world to photograph 35 threatened tribes in an unashamedly glamorous style