Nvodafone airtouch's bid for mannesmann pdf merger

The deal to create the worlds biggest wireless firm is likely to reshape the global. The merger between vodafone is mannesmann is considered to be a horizontal one since both companies operates within telecommunication industry. Hostile takeover bids are extremely rare in germany, and the 11thhour agreement allows mannesmann to point to this as a friendly merger. Vodafone then though of acquiring mannesmann through hostile takeover. Our group is to analyze the strategic and economic rationale for mannesmann s acquisition of orange and to calculate whether this was a fair price. Gent was responsible for transforming vodafone from a small uk operator into the global operator, through the merger with the american airtouch and the takeover of germany s mannesmann. Apr 18, 2001 vodafone s bid for germany s mannesmann was the largest ever cross border hostile bid. Apr 18, 2001 vodafone airtouchs bid for mannesmann case analysis, vodafone airtouchs bid for mannesmann case study solution, vodafone airtouchs bid for mannesmann xls file, vodafone airtouchs bid for mannesmann excel file, subjects covered acquisitions international business negotiation by simi kedia source. The merger would create the worlds largest telecoms company. Feb 03, 2000 mannesmann ag tonight said it was recommending an improved bid for the company from vodafone airtouch plc, paving the way for a merger of the two firms to a mobile phone giant. Apr 18, 2001 vodafone bid for mannesmann was the largest crossborder hostile take over attempt. But the company earlier had been fiercely opposed to the deal. It predominantly operates services in the regions of asia, africa, europe, and oceania.

Vodafone airtouchs, mobile phone group, chief executive, chris gent, is said to have gone cool on making a hostile takeover bid for mannesmann duesseldorf, germany, engineering and telecoms group. Political interest in the case would be huge, that the company knew, but it set all reservations aside and bid on november 14th. Vodafone airtouch s, mobile phone group, chief executive, chris gent, is said to have gone cool on making a hostile takeover bid for mannesmann duesseldorf, germany, engineering and telecoms group. European regulation mobile phone operator and manufacturer alliances should also have been considered. During the merger period, vodafone was in a superior financial position. The take over bid from the british mobile phone company led to a wide debate.

Table 4 a comparison of mannesmann ag and vodafone airtouch plc, march. Vodafone airtouch s bid for mannesmann vodafone airtouchs bid for mannesmann harvard business school 9201096 revised on august 22, 2003. Jun 17, 2012 vodafone bid for mannesmann in 1999 slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. As a result of the merger, vodafone and mannesmann had controlling stakes in ten european markets. The deal to create the world s biggest wireless firm is likely to reshape the global. Vodafone won because it paid to win, using its powerful stock. Vodafone airtouchs bid for mannesmann case solution and. There is no single measurecalculation who can give you.

Vodafone airtouch goes cool on mannesmann bid telecompaper. Vodafone airtouchs bid for mannesmann essay sample. Mannesmann accepts merger with vodafone fri, feb 4, 2000, 00. December 2000 martin marinschek, student id 9803246.

Vodafone airtouchs bid for mannesmann first of all, one has to mention that it is always difficult to evaluate a company. The mannesmann executive board, however, immediately rejected the acquisition proposal, calling it an inferior offer. Vodafone merged with airtouch to become vodafone air touch, the. This case examines the economic, financial, and corporate governance issues in the deal. Bbc news business vodafone takeover battle heats up. This case study of the hostile takeover of mannesmann ag by vodafone in. Merger analysis of vodafone airtouch and mannesmann ag. You will receive access to two case study solutions. On november 1999, the ukbased vodafone airtouch, the worlds largest mobile phone group, announced a takeover bid for the german telecommunications and engineering group mannesmann ag, on the basis of an exchange of shares between the two corporations. This case analyzes the economic, financial, and business governance problems in the offer. A merged vodafone, airtouch, and mannesmann would be represented.

There is no single measurecalculation who can give you the valuation of a company. This offer was the largest unsolicited takeover bid at that time. Vodafone airtouchs bid for mannesmann, in kester, ruback and tufano ed. Its registered office is located in newbury, berkshire, england and its global headquarters is based in london, england. What was the strategic and economic rationale for mannesmanns acquisition of orange. If you continue browsing the site, you agree to the use of cookies on this website. European regulation mobile phone operator and manufacturer alliances should also. The new company will be called vodafone airtouch, although the mannesmann name will be retained in germany. Among mobile operator groups globally, vodafone ranked 4th behind china mobile, bharti airtel. Ending months of wrangling, mannesmann accepted vodafone airtouch s sweetened bid of 58.

This case analyzes the economic, fiscal, and business governance problems in the offer. Vodafone airtouchs bid for mannesmann case analysis. Vodafones hostile takeover bid for mannesmann highlights. Mannesmanns acquisition of orange a back grand introduction.

Mannesmann operates mobile phone companies in germany and france, and has also succeeded with a. Vodafone airtouchs bid for mannesmann case analysis, vodafone airtouchs bid for mannesmann case study solution, vodafone airtouchs bid for mannesmann xls file, vodafone airtouchs bid for mannesmann excel file, subjects covered acquisitions international business negotiation by simi kedia source. How would you explain a decision to reject the paramount offer at the annual shareholders meeting. On november, 1999, the ukbased vodafone airtouch, the worlds largest mobile phone group, announced a takeover bid for the german telecommunications and engineering group mannesmann ag on the basis of an exchange of shares between the two companies. Mannesmann vs vodafone mergers and acquisitions companies. First of all, one has to mention that it is always difficult to evaluate a company. Vodafone plunged into massive losses after oneoff costs of more than. It was clear that the merger between mannesmann and orange could not be broken, it was a done deal, so the only possibility left open for vodafone was to bid for mannesmann itself. Dec 16, 2012 answer 2 bour merger arbitrage position is. Abstract this paper summarizes the proceedings of the largest merger in the history of the telecommunication business, including the two players vodafone and mannesmann. Vodafone airtouch s bid for mannesmann vodafone airtouch s bid for mannesmann harvard business school 9201096 revised on august 22, 2003. And they feared failure might burst the telecoms bubble.

Vodafones bid for mannesmann was the largest ever cross border hostile bet. Vodafone bid for mannesmann was the largest crossborder hostile take over attempt. Vodafone airtouch, one of the worlds leading international mobile telecommunications companies, was considering launching a formal hostile bid for mannesmann, a german telecommunications company which is also among the largest telecommunications companies in europe. On november, 1999, the ukbased vodafone airtouch, the worlds largest. Mannesmann accepts merger with vodafone the irish times. Vodphone airtouchs bid for mannesmann study questions 1. Vodafone bid for mannesmann in 1999 slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Mannesmann ag tonight said it was recommending an improved bid for the company from vodafone airtouch plc, paving the way for a merger of the two firms to a mobile phone giant. The merger of the two entities reduces the number of competing firms by one and at the same time, increases the industrial concentration. Case answers for vodafone airtouchs bid for mannesmann.

Its shareholders supported its share price and thereby its bid because they believed its story. Vodafone airtouchs bid for mannesmann essay example. Analyzing the history of the two companies, the reasons for the merger, the merger itself and the outcome of the. The value of a company can be different for every single human being. Vodafones bid for germanys mannesmann was the largest ever cross border hostile bid.

A merger would create a company with mobile phone interests in 15 european countries with 30 million customers. Based on vodafones closing price on 18 november of. Vodafone airtouchs bid for mannesmann case solution. As a result, vodafones acquisition of mannesmann could put at risk their opportunity to win a bid for spectrum licensing. When mannesmann announced their intention to buy orange, vodafone attempted to acquire mannesmann itself, but this attempt was rejected by the management.