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Vodafone makes $55B offer
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January 6, 1999: 6:37 a.m. ET
Deal would pre-empt Bell Atlantic's $45B bid, creating biggest mobile operator
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LONDON (CNNfn) - Fresh reports suggest Vodafone has made a dramatic intervention in the bidding for U.S. cellular phone company AirTouch with a $55 billion knock-out blow against Bell Atlantic's $45 billion proposed bid.
Published reports Wednesday revealed details of the deal Vodafone (VOD) confirmed on Tuesday.
London's Financial Times says Vodafone has submitted a preliminary offer worth $55 billion (£33 billion).
Vodafone's bid, says the Financial Times, has already been submitted via financial advisor Goldman Sachs and is in the form of Vodafone shares with a small cash element. The offer is believed to be worth over $90 a share.
According to The Wall Street Journal, Vodafone is offering stock worth $89.56 per share, plus $5 to $6 in cash.
A merger would create the world's largest mobile phone group with a market value of about $110 billion. Combined revenues would be $11 billion with some 20 million customers worldwide.
Vodaphone shares opened sharply higher in London Wednesday, adding 22.5p to 1133.0 on top of Tuesday's gains of 61.5 pence.
On Wall Street Tuesday, AirTouch (ATI) closed up 7-1/8 at 75. Vodafone's American depositary receipts climbed $4.50 to close at $179.125.
Vodafone reportedly wants to structure any offer as a merger of equals in a 50-50 split, says the Financial Times. 
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