Mannesmann Board Again Rejects Vodafone Offer

Mannesmann’s supervisory board Sunday unanimously rejected a takeover bid from Britain’s Vodafone AirTouch, setting the stage for the largest hostile corporate takeover attempt in history.

But in an apparent softening of his earlier stance, Mannesmann Chief Executive Klaus Esser said his group wanted to maintain fruitful links with Vodafone in lucrative joint ventures in Germany, Italy and France.

“As far as Vodafone AirTouch is concerned, it is our intention that we both find a way back to the good cooperation in our three joint ventures,” Esser said.

Mannesmann, a Dusseldorf-based telecommunications and engineering group, operates the largest cellular business in Germany. Vodafone runs the world’s No. 1 mobile phone business.

The German mobile-phone giant’s board said the $125-billion offer did not reflect the potential worth of the shares. Mannesmann has twice rejected the offer.

“It is not in the interest of shareholders, employees or the entire firm,” the board said in a statement.

Esser had said he believes the company’s strategy of integrating fixed-line and mobile operations is superior to Vodafone’s sole focus on wireless communications.

Esser said Mannesmann planned today to lay out its business plans for next year--and did not rule out further cooperation with Vodafone.

“We’re extending our hands so we can emerge with the healthy cooperation that has been the basis of our success,” he said.

Vodafone Chief Executive Chris Gent had hoped to persuade Mannesmann’s management to recommend that its shareholders accept the $242-per-share bid, but also said he would appeal directly to investors.

Vodafone has said it will make its formal offer to Mannesmann shareholders next month. There was no immediate comment from Vodafone to the most recent rejection.

Relations between the partners have become increasingly acrimonious since Vodafone made an initial $100-billion bid for Mannesmann this month.

That move followed Mannesmann’s acquisition in October of Vodafone rival Orange, a deal the German group made without consulting its British partner.

The offer is the biggest takeover bid ever, topping MCI WorldCom Inc.’s record $115-billion friendly bid for Sprint Corp., an acquisition still awaiting approval by U.S. regulators.