Vodafone AirTouch PLC

Chris Gent, Chief Executive:

"Over the past year, we have greatly enhanced the growth potential and competitiveness of Vodafone through significant strategic moves, and Goldman Sachs has played an essential part in our success. We first sat down together in 1998 to discuss how Vodafone could move from regional to global leadership in mobile communications. Gaining a strong footprint in the U.S. market was a requisite. Goldman Sachs helped us to construct alternative scenarios and acted as an objective sounding board as we worked through the decisions. The firm indicated that a merger with AirTouch would be well received by the public—and that turned out to be the case. The firm also took the lead in raising $10 billion to finance the merger. The scale and scope of Vodafone AirTouch immediately enhanced our purchasing power, diversified our asset base and strengthened our financial resources. It gave us much greater growth prospects in both voice and data communications, which was demonstrated in our next step—reaching an agreement with Bell Atlantic Corp. to set up a venture that will be the third largest wireless company in the world. As we continue to develop and roll out our strategy for global expansion, I value the relationship between our team and Goldman Sachs."

• Goldman Sachs acted as sole financial advisor to Vodafone in its merger with AirTouch Communications, Inc. to form Vodafone AirTouch—one of the world’s leading mobile communications companies. Valued at $125 billion at closing, this was the largest cross-border merger ever.
• Goldman Sachs was joint bookrunner and joint lead arranger of a $10 billion senior credit facility for Vodafone to finance costs related to the merger with AirTouch. These were among the largest syndicated European bank facilities and stand-alone wireless financings ever.
• Goldman Sachs served as sole financial advisor to Vodafone in the combining of its U.S. wireless properties with those of Bell Atlantic Corp. to form the largest U.S. mobile communications operator. Valued at approximately $80 billion at signing, this was the largest joint venture transaction ever.
• Goldman Sachs served as sole financial advisor to Vodafone in the sale of its stake in German mobile operator E-plus Mobilfunk GmbH to BellSouth Corp. for $1.8 billion.