VODAFONE is expected early this week to make an agreed cash offer of about £2 billion for controlling stakes in Mobilfon of Romania and Oskar Mobil of the Czech Republic, writes Paul Durman.

The UK mobile giant is buying the businesses from Telesystem International Wireless, the Canadian group that previously owned Dolphin Telecom, a UK firm that failed in 2001. Vodafone already has a 20% stake in Mobilfon, which has recently been overtaken by Orange as market leader in Romania.

The deal will extend Vodafone’s “footprint” in eastern Europe, but the prospect has received a mixed reception from the City. Analysts at ABN Amro said the deal would be “value destructive”.

Mobilfon has about 5m customers and had service revenues last year of $686m (£356m). Oskar has about 1.9m customers and had revenues last year of $523m. o Qwest Communications, the No4 local-telephone provider in America, is said to be planning to raise its $8 billion offer for MCI in an attempt to stop Verizon buying it.

MCI, the No2 American long-distance operator, reopened negotiations after Qwest revised the $24.60-a-share bid.

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