MADRID-British Telecommunications plc and Vodafone AirTouch plc ended their ongoing struggle for control of Spain’s wireless carrier Airtel, with BT agreeing to support Vodafone in acquiring further stakes in Airtel. Both companies currently are Airtel shareholders.
In return, if Vodafone AirTouch’s holding exceeds 55 percent, BT has the option to acquire the excess. If Vodafone AirTouch holds more than 55 percent of Spain’s second-largest mobile operator, the board will be restructured to give BT and Vodafone AirTouch equal representation.
“Through this agreement, BT and Vodafone aim to increase their presence in the Spanish market and jointly take a greater role in the long-term development of Airtel,” the companies said.
Vodafone AirTouch currently owns 21.7 percent of Airtel, and BT holds 17.8 percent. Vodafone and BT have been competing for several months to gain control of Airtel by buying a 30.5-percent stake from Banco Santander Central Hispano. Both companies had bid for the BSCH shares. However, an existing agreement among shareholders to split any shares offered for sale for months stalled either BT or Vodafone AirTouch from acquiring a majority control.
In January, Vodafone AirTouch signed agreements with shareholders Acciona SA, Torreal SA and Corporacion Financiera Alba regarding a series of conditional options for their shares, representing 16.91 percent total of Airtel.
At the end of March, Airtel had more than 5.6 million customers.
