Mannesmann said it plans to sell more than 50 per cent of the engineering and automotive arm in an initial public offering next summer, six months earlier than originally planned. "It should also eliminate any remaining conglomerate discount in Mannesmann's stock price," Chairman Klaus Esser said in a statement.

Mannesmann is the target of a hostile takeover bid by Vodafone AirTouch PLC that is currently valued at $121.33 billion. Vodafone's chief executive officer, Chris Gent, is on a week-long European tour, visiting Mannesmann shareholders about the offer.

Meanwhile, Mannesmann said Tuesday that adjusted earnings before interest, tax, depreciation and amortization from its telecommunications arm rose 71 per cent to 1.6 billion euros ($1.64 billion) during the first nine months of the year.

The figure was adjusted for portfolio changes, it said, adding that about 96 per cent of the earnings from telecommunications were from Mannesmann-controlled activities.

Its mobile phone business was the main growth driver, with Mannesmann D2, and it's acquisition of Omnitel and SFR, contributing to Mannesmann Telcommunications profit from ordinary activities rising 37 per cent to 1 billion euros from 729 million euros a year earlier, the company said. In the nine months ended September 1999, profit from ordinary activities at the engineering unit was up to 18 per cent 236 million euros from 200 million euros in the same period a year earlier.

Mannesmann Automotive posted a decline in profit from ordinary activities for the nine month period, to 73 million euros from 181 million euros a year earlier. The company said the decline is a result of integration and increased research and development costs from the integration of VDO Car Communications.

At Mannesmann Tubes, the unit posted a loss of 93 million euros on ordinary activities, down from a profit of 35 million euros a year earlier, resulting from the "exceptionally difficult market situation," the company said.

Profit from ordinary activities for the Mannesmann group was up to 1.1 billion euros from 1.08 billion euros a year earlier with the group's adjusted earnings before taxes, depreciation and amortization for the nine months up to 1.6 billion euros from 931 million a year earlier.

The company also reported bid for Orange has been approved by 74.86 per cent of Orange shareholders, making Mannesmann the largest wireless telecommunications provider in Europe. Mannesmann said it expects full-year EBITDA without Orange to be 30 per cent higher than the 1998 level. But net profit and profit from ordinary activities will likely be down on the year, it said.

-- The Wall Street Journal