Vodafone airtouch was one of the worlds leading international mobile telecommunications companies. It predominantly operates services in the regions of asia, africa, europe, and oceania. Based on vodafone s closing price on 18 november of. Airtouch, the worlds largest mobile phone group, announced a takeover bid for the. Vodafone airtouchs bid for mannesmannexecutive summary.
Executive summary 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. Apr 18, 2001 vodafone s bid for germany s mannesmann was the largest ever cross border hostile bid. If this come true, it will become the largest hostile takeover. In the twentieth century, mannesmanns product range grew and the company expanded into numerous sectors starting from various steel. First of all, one has to mention that it is always difficult to evaluate a company. Vodafones acquisition of mannesmann could put at risk their opportunity to win a bid for spectrum licensing. Vodafone s interest in mannesmann had been increased by the latter s purchase of orange, the uk mobile operator. Besides its strong position in germany, the acquisition of orange increased mannesmanns critical size and power. In 2000, mannesmann was acquired by vodafone group plc. Vodafone is a cellular giant operating in various countries.
Vodafones bid for germanys mannesmann was the largest ever cross border hostile bid. This case examines the economic, financial, and corporate governance issues in the deal. Harvard business publishing is an affiliate of harvard business school. Corporate dividend share buyback decisions readings.
There is no single measurecalculation who can give you the valuation of a company. Orange was precisely one of the leader in the uk with the 3rd market share 18% and was vodafone airtouchs rival in the uk market. Vodafone airtouchs bid for mannesmann case analysis. What was the strategic and economic rationale for mannesmann s acquisition of orange. European regulation mobile phone operator and manufacturer alliances should also. European regulation mobile phone operator and manufacturer alliances should also have been considered.
Case answers for vodafone airtouchs bid for mannesmann. Vodafone on a hostile takeover december 2000 martin marinschek, student id 9803246 abstract this paper summarizes the proceedings of the largest merger in the history of the telecommunication business, including the two players vodafone and mannesmann. The merger between vodafone is mannesmann is considered to be a horizontal one since both companies operates within telecommunication industry. Vodafone airtouch was one of the worlds leading international mobile. The merger of the two entities reduces the number of competing firms by one and at the same time, increases the industrial concentration. Vodafone airtouchs bid for mannesmann case solution. Britains vodafone airtouch and germanys mannesmann are to merge. European commission approves vodafonemannesmann merger. Vodafone airtouch goes cool on mannesmann bid telecompaper. 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 operation involves the acquisition of sole control over mannesmann by vodafone airtouch by way of public bid announced on 20. Apr 18, 2001 vodafone airtouchs bid for mannesmann case study solution, vodafone airtouchs bid for mannesmann case study analysis, subjects covered acquisitions international business negotiation by simi kedia source. This case analyzes the economic, fiscal, and business governance problems in the offer. Feb 03, 2000 britains vodafone airtouch and germanys mannesmann are to merge.
European commission approves vodafonemannesmann merger wsj. 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. Chris gent would later say mannesmann s move into the uk broke a gentleman s agreement not to compete in each other s home territory. Case questions vodafone vodafone airtouchs bid for. Some reports suggest the company would consider merging its telecom operations with french conglomerate vivendi in a bid to fend off the hostile bid. 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. In november 1999, vodafone made an unsolicited bid for mannesmann, which was rejected. Apr 18, 2001 vodafone is a cellular giant operating in various countries. Abstract this paper summarizes the proceedings of the largest merger in the history of the telecommunication business, including the two players vodafone and mannesmann. European state company and ownership by vodafone airtouch belgium belgacom mobile proximus. Vodafone airtouchs bid for mannesmann first of all, one has to mention that it is always difficult to evaluate a company. As a result, vodafones acquisition of mannesmann could put at risk their opportunity to win a bid for spectrum licensing.
Based on vodafones closing price on 18 november of. When mannesmann announced their intention to buy orange, vodafone attempted to acquire mannesmann itself, but this attempt was rejected by the management. In november 1999, it announced a takeover bid for the german telecommunications and engineering group mannesmann ag, on the basis of an exchange of shares between. The emergence associated with the emergence of hostile bids. Angloamerican cellular phone operator vodafone airtouch agreed monday to buy commnet cellular, a manager of mobile networks in nine western u. Vodafone 20% mannesmannorange 12% germany mannesmann mobilfunk d2. Vodafone airtouchs chief executive chris gent may approach hutchison whampoa for their support. August 2006 by josh lerner blaine kitchenware, inc capital structure brief case by joel l. The deal to create the worlds biggest wireless firm is likely to reshape the global. Merger analysis of vodafone airtouch and mannesmann ag. 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.
December 2000 martin marinschek, student id 9803246. Mannesmann ag tonight said it was recommending an improved bid for the. Mannesmann ag tonight said it was recommending an improved bid for the company from vodafone airtouch plc, paving the way for a. Analyzing the history of the two companies, the reasons for the merger, the. Wealth creation in the worlds largest mergers and acquisitions. Vodafone airtouchs bid for mannesmann case questions 1. Vodafones bid for mannesmann was the largest ever crossborder hostile bid. Vodafone s bid for mannesmann was the largest ever crossborder hostile bid. If you continue browsing the site, you agree to the use of cookies on this website. Vodafone airtouch s bid for mannesmann vodafone airtouch s bid for mannesmann harvard business school 9201096 revised on august 22, 2003. This offer represented a significant premium to mannesmann s closing price of. Payout policy in the 21st century, alon brav, john graham, campbell harvey, and roni michaely, journal of financial economics, 77, 483527.
Vodafone airtouchs bid for mannesmann essay example. The operation involves the acquisition of sole control over mannesmann by vodafone. 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. Vodafone airtouchs bid for mannesmann executive summary. Among mobile operator groups globally, vodafone ranked 4th behind china mobile, bharti airtel. Vodafone airtouchs bid for mannesmann by simi kedia yale university investments office. Analyzing the history of the two companies, the reasons for the merger, the merger itself and the outcome of the. This case analyzes the economic, financial, and business governance problems in the offer. Vodafones bid for mannesmann was the largest ever cross border hostile bet. As of december 17, 1999, what was the market value of mannesmanns contribution to the combined firm.
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. Bbc news business vodafone takeover battle heats up. The value of a company can be different for every single human being. Jan 15, 1999 vodafone wins airtouch january 15, 1999.
Vodafone bid for mannesmann was the largest crossborder hostile take over attempt. In november 1999, it 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. Vodafones agreed offer gives mannesmann shareholders a 49. Vodafone s interest in mannesmann had been increased by the latter purchase of orange, the uk mobile operator. Vodafone airtouch s chief executive chris gent may approach hutchison whampoa for their support. The deal to create the world s biggest wireless firm is likely to reshape the global. This offer represented a significant premium to mannesmanns closing price of. You will receive access to two case study solutions.
We can provide personalized digital printing, offset commercial printing, marketing solutions, and so much more. Explores the functioning of a german supervisory board in the context of a takeover bid made by a british company. What was the strategic and economic rationale for mannesmanns acquisition of orange. Analyzing the history of the two companies, the reasons for the merger, the merger itself and the outcome of the takeover. 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. Dec 16, 2012 answer 2 bour merger arbitrage position is. Argues the bids most important consequence is that it has yet again forced re. Afa meetings at philadelphia, university of zurich scheduled. Vodafone airtouchs bid for mannesmann case solution and. Jun 17, 2012 vodafone bid for mannesmann in 1999 slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. This acquisition strengthens mannesmanns presence in the mobile and the internet market. Vodafone airtouchs bid for mannesmann essay sample.
Buy books, tools, case studies, and articles on leadership, strategy, innovation, and other business and management topics. But already speculation exists that mannesmann may seek a partner or alliance. Vodafone airtouchs bid for mannesmann case study solution, vodafone airtouchs bid for mannesmann case study analysis, subjects covered acquisitions international business negotiation by simi kedia source. As a result, vodafone s acquisition of mannesmann could put at risk their opportunity to win a bid for spectrum licensing. Mannesmann vs vodafone mergers and acquisitions companies. This case study of the hostile takeover of mannesmann ag by vodafone in 2000 demonstrates.
1047 513 1008 510 940 75 1409 1081 29 234 455 510 1026 1097 282 106 1158 758 1052 175 1342 967 1187 1379 1229 1217 106 1477 538 1072 1439