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GERMAN PRESS: Vodafone, Tax Authorities Close To Deal

BERLIN (Dow Jones)--The tax dispute between Vodafone Group PLC (VOD) and German authorities in the state of North-Rhine Westphalia about using a EUR50 billion writedown on its German business in 2001 to offset future tax bills is close to being resolved, according to an advance report from Monday's Die Welt newspaper.

Without disclosing its sources, the newspaper says the tax assessment for 2001 could be sent to Vodafone in the first half of 2006 with tax authorities neither fully accepting EUR50 billion as a writedown nor dismissing the claim fully.

Tax authorities and Vodafone declined to comment on the report, with Vodafone only confirming that the tax examination hasn't been concluded yet, Die Welt says.

Vodafone aims to salvage some financial solace from the drop in the value of Mannesmann, the German wireless operator it bought for some EUR180 billion at the peak of the technology boom in 2000.