Mannesmann, the besieged German telecommunications and engineering group, is set to mount a robust defence against Vodafone AirTouch's hostile 124 billion euro (about HK$991.59 billion) bid following strong backing from its top-ranking supervisory board.
The endorsement gives Mannesmann's chief executive Klaus Esser the green light to 'pull out all the stops' in its resistance to the Vodafone bid, sources close to the company said.
These are likely to include a much faster than envisioned demerger of its tube-manufacturing and automotive businesses and could even involve the introduction of a potential 'white knight', although this is seen as a last resort.
The moves are aimed at persuading Mannesmann shareholders, which include Hutchison Whampoa, the largest with a 10.2 per cent stake, to stay loyal to the company and reject the Vodafone bid.
Plans are already under way to speed up the demerger of Mannesmann's engineering businesses, which would significantly bolster its balance sheet.
The sale of the non-telecoms units could fetch eight billion euros and also strengthen Mannesmann's desire to be seen as a pure telecoms play likely to produce better returns independently than as part of the Vodafone empire.
Mannesmann's recent bid to buy Orange, the British mobile phone group first launched by Hutchison Whampoa, has shown that it is intent on being a leading player in the European telecoms industry, sources said.