Pinkerton

Executive Summary As competition in the European telecommunications continues to increase, there has been an increasing trend toward the consolidation of firms. Considering these changes in the grocery store and surveying the competitive landscape, Chris Gent, CEO of Vodaf sensation Airtouch has recently made a friendly brook to acquire Mannesmann AG. Mr. Gents occupy increased considerably after learning Mannesmann acquired orangeness PLC, one of Vodafones largest competitors in the UK. After the friendly acquisition gap was subsequently rejected due to Mannesmanns perception that the offer was inadequate, we analyzed the synergies and estimated virtue trade-offs that are expected to occur upon the concourse of the two firms and have concluded that Vodafone Airtouch should proceed with a ill bid initiative. We believe that a hostile bid allow for be accepted based on reasons including: 1) Mannesmann shareholders will gather through an immediate appreciation of equity value. Although various analyst synergy estimates differ, they all commonly project significant increases in Mannesmann equity value. The conservative estimation by Goldman Sachs, being a 23.7% increase, represents a change from £80 one million million to £100 billion in equity value for Mannesmann shareholders.

2) Although Vodafones shares will amaze diluted due to the issuance of 27,811 million new shares, equity value per share of the original shares will appreciate by 25.5% from £83,983 million to £105,404 million due to estimated synergies. 3) We anticipate that Vodafone shareholders will consider the risk of attempting the hostile acquisition worthwhile, particularly because the risk of not doing so involves losing a favorable competitive position if they amaze intot acquire Mannesmann and end up facing Mannesmann/Orange as a formidable competitor. Summary of Facts On celestial latitude 17, 1999, the board of Vodafone was reviewing their hostile bid for Mannesmann (MM). If their bid was successful,... If you want to get a full essay, order it on our website: Orderessay

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