Apr 18, 2001 vodafone s bid for germany s mannesmann was the largest ever cross border hostile bid. Vodafone s bid for mannesmann was the largest ever cross border hostile bet. This offer represented a significant premium to mannesmann s closing price of. 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 essay sample. In november 1999, vodafone made an unsolicited bid for mannesmann, which was rejected. Dec 16, 2012 answer 2 bour merger arbitrage position is. Mannesmann vs vodafone mergers and acquisitions companies. 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 case study of the hostile takeover of mannesmann ag by vodafone in 2000 demonstrates. Vodafones agreed offer gives mannesmann shareholders a 49. 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. Payout policy in the 21st century, alon brav, john graham, campbell harvey, and roni michaely, journal of financial economics, 77, 483527. Mannesmann ag tonight said it was recommending an improved bid for the company from vodafone airtouch plc, paving the way for a.
Vodafone s bid for mannesmann was the largest ever crossborder hostile bid. Besides its strong position in germany, the acquisition of orange increased mannesmanns critical size and power. Merger analysis of vodafone airtouch and mannesmann ag. 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. Apr 18, 2001 vodafone is a cellular giant operating in various countries. Vodafone airtouchs bid for mannesmann first of all, one has to mention that it is always difficult to evaluate a company. The deal to create the world s biggest wireless firm is likely to reshape the global. Abstract this paper summarizes the proceedings of the largest merger in the history of the telecommunication business, including the two players vodafone and mannesmann. What was the strategic and economic rationale for mannesmanns acquisition of orange. After its 1999 takeover of airtouch usa, vodafone became the worlds. 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.
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. 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. The emergence associated with the emergence of hostile bids. Mannesmann ag tonight said it was recommending an improved bid for the. 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. 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. Among mobile operator groups globally, vodafone ranked 4th behind china mobile, bharti airtel. 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. Corporate dividend share buyback decisions readings. Afa meetings at philadelphia, university of zurich scheduled. Vodafone airtouchs bid for mannesmann essay example. 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. Wealth creation in the worlds largest mergers and acquisitions.
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. This was a controversial takeover, since never before in germany had a company as large and successful as mannesmann been acquired in a hostile takeover by a nongerman owner. Vodafone airtouchs bid for mannesmann executive summary. Feb 03, 2000 britains vodafone airtouch and germanys mannesmann are to merge. The take over bid from the british mobile phone company led to a wide debate.
Vodafone airtouchs bid for mannesmann, in kester, ruback and tufano ed. Buy books, tools, case studies, and articles on leadership, strategy, innovation, and other business and management topics. As a result, vodafone s 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. Vodafone airtouch s chief executive chris gent may approach hutchison whampoa for their support. Mannesmann s strategy to be the single supplier of fixed lines, wireless, and internet activities was under the belief that an integrated product base will better satisfy customer demand and increase their revenues. Vodafone is a cellular giant operating in various countries. Vodafones acquisition of mannesmann could put at risk their opportunity to win a bid for spectrum licensing. In the twentieth century, mannesmanns product range grew and the company expanded into numerous sectors starting from various steel. This offer represented a significant premium to mannesmanns closing price of.
Vodafones bid for mannesmann was the largest ever crossborder hostile bid. European commission approves vodafonemannesmann merger. 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 operation involves the acquisition of sole control over mannesmann by vodafone. Vodafone airtouch goes cool on mannesmann bid telecompaper. What was the strategic and economic rationale for mannesmann s acquisition of orange. Vodafone s interest in mannesmann had been increased by the latter s purchase of orange, the uk mobile operator. Based on vodafone s closing price on 18 november of. We can provide personalized digital printing, offset commercial printing, marketing solutions, and so much more. You will receive access to two case study solutions. December 2000 martin marinschek, student id 9803246. As of december 17, 1999, what was the market value of mannesmanns contribution to the combined firm. In 2000, mannesmann was acquired by vodafone group plc. Vodafone airtouch s bid for mannesmann vodafone airtouch s bid for mannesmann harvard business school 9201096 revised on august 22, 2003.
August 2006 by josh lerner blaine kitchenware, inc capital structure brief case by joel l. Case questions vodafone vodafone airtouchs bid for. Addresses the question of whether a pure mobile play is indeed a sensible strategy for the new millennium, but concludes it is too early for a definite answer. Bbc news business vodafone takeover battle heats up. Angloamerican cellular phone operator vodafone airtouch agreed monday to buy commnet cellular, a manager of mobile networks in nine western u. Airtouch, the worlds largest mobile phone group, announced a takeover bid for the. Britains vodafone airtouch and germanys mannesmann are to merge. If this come true, it will become the largest hostile takeover. The value of a company can be different for every single human being.
The deal to create the worlds biggest wireless firm is likely to reshape the global. First of all, one has to mention that it is always difficult to evaluate a company. Vodafone airtouchs bid for mannesmann case solution and. Explores the functioning of a german supervisory board in the context of a takeover bid made by a british company. Vodafones bid for mannesmann was the largest ever cross border hostile bet. Vodafone airtouch was one of the worlds leading international mobile.
As a result, vodafones acquisition of mannesmann could put at risk their opportunity to win a bid for spectrum licensing. Harvard business publishing is an affiliate of harvard business school. Vodafone airtouch was one of the worlds leading international mobile telecommunications companies. Argues the bids most important consequence is that it has yet again forced re. Vodafone airtouchs bid for mannesmann case questions 1.
But already speculation exists that mannesmann may seek a partner or alliance. Vodafone airtouchs bid for mannesmann case analysis. 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. There is no single measurecalculation who can give you the valuation of a company. Vodafone airtouchs bid for mannesmann by simi kedia yale university investments office. Vodafone bid for mannesmann was the largest crossborder hostile take over attempt. Vodafones interest in mannesmann had been increased by the latter purchase of orange, the uk mobile operator. 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.
This case analyzes the economic, fiscal, and business governance problems in the offer. Vodafone airtouchs bid for mannesmann case solution. Analyzing the history of the two companies, the reasons for the merger, the merger itself and the outcome of the. Case answers for vodafone airtouchs bid for mannesmann. Vodafone 20% mannesmannorange 12% germany mannesmann mobilfunk d2.
European regulation mobile phone operator and manufacturer alliances should also. Its registered office is located in newbury, berkshire, england and its global headquarters is based in london, england. This case analyzes the economic, financial, and business governance problems in the offer. Analyzing the history of the two companies, the reasons for the merger, the merger itself and the outcome of the takeover. European regulation mobile phone operator and manufacturer alliances should also have been considered. 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. This acquisition strengthens mannesmanns presence in the mobile and the internet market. The merger between vodafone is mannesmann is considered to be a horizontal one since both companies operates within telecommunication industry. Based on vodafones closing price on 18 november of. If you continue browsing the site, you agree to the use of cookies on this website. Vodafone airtouchs bid for mannesmannexecutive summary. This case examines the economic, financial, and corporate governance issues in the deal. Vodafone airtouchs chief executive chris gent may approach hutchison whampoa for their support. European commission approves vodafonemannesmann merger wsj.
Jan 15, 1999 vodafone wins airtouch january 15, 1999. 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 s interest in mannesmann had been increased by the latter purchase of orange, the uk mobile operator. Analyzing the history of the two companies, the reasons for the merger, the.
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