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Vodafone AirTouch Shares Plummet Amid Potential Bid for Mannesmann

Strategic Insights

— 1 min read

Vodafone AirTouch's potential bid for Mannesmann has sent shockwaves through the telecommunications sector, causing the company's shares to plummet 16 percent on Tuesday. The British concern's announcement comes just months after a $74.4 billion acquisition of AirTouch Communications. Meanwhile, ESoft's shares more than doubled after Intel invested in the company and signed a software development deal, and Staples' stock rose after posting strong third-quarter results.

Key Takeaways:

  • Vodafone AirTouch's shares fell 16 percent on Tuesday after announcing a potential bid for Mannesmann, a German wireless phone company.
  • The British concern's potential bid follows a $74.4 billion acquisition of AirTouch Communications just months earlier.
  • ESoft's shares more than doubled after Intel invested in the company and signed a software development deal, with the stock jumping $9.37 1/2 to $17.50.
  • ESoft's Chief Executive Jeff Finn stated that the investment is a minority stake, less than 20 percent, with new shares to be issued to Intel.
  • Staples' stock rose 62 1/2 cents to $25.37 1/2 after posting strong third-quarter results, invalidating conjecture about an oversupply of outlets in the office superstore industry.
  • The strong quarterly report from Staples prompted investors to take profits, causing the stock to rise 13 percent the day before.
  • The investment by Intel in ESoft and the potential bid by Vodafone AirTouch for Mannesmann highlight the growing importance of strategic partnerships and investments in the telecommunications sector.

Statistics:

  • Vodafone AirTouch's shares fell 16 percent on Tuesday.
  • The company's shares closed down $8.62 1/2 at $43.87 1/2.
  • ESoft's shares more than doubled, up $9.37 1/2 to $17.50.
  • Intel's investment in ESoft is a minority stake, less than 20 percent.
  • Staples' stock rose 62 1/2 cents to $25.37 1/2 after posting strong third-quarter results.
  • The potential bid by Vodafone AirTouch for Mannesmann is worth billions, following a $74.4 billion acquisition of AirTouch Communications just months earlier.

Sources:

  • "Vodafone AirTouch Makes Hostile Bid for Mannesmann Considered" by The New York Times.
  • "Intel Invests in ESoft, Signs Software Development Deal" by CNBC.
  • "Staples Posts Strong Third-Quarter Results, Invalidating Conjecture" by Bloomberg.

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