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Verizon shareholders were the winners in the deal in that the new wireless unit was expected to have an annual income of 21.8 billion as operations income, a major boost to Verizon wireless coffers. The implication would be that Verizon wireless would have huge capital for investment in its wireless network infrastructure to take over competition wars to new levels. The deal was particularly of much importance to Vodafone shareholders as the company was not in a position to control operations and dividends in the U.S market. As such, the deal liberated Vodafone to focus more on reinventing and improving its operations in the European market where they have total control of their operations. Concentrating on the European market would improve the value of the company to its shareholders. In other words, the company made efforts to concentrate in smaller market segment hence improved performance and obtaining a competitive edge.
The move to sell Vodafone U.S to Verizon was a response to the dwindling fortunes in the European market, which was badly affected by the debt crises. As such the buyout would leave Vodafone in improved financial status for boosting its network in the European market, which would be a win to Vodafone shareholders after several years of misfortune. The lucrativeness of the deal was evident by the fact that Verizon had agreed to sell its 23% stake in Vodafone Italy back to Vodafone at a cost of $3.5 billion. The amount is a fraction of what Verizon churned out for Vodafone US. On the other hand, the deal was a major boost to Verizon shares in the market. Verizon was expecting at least 10% gain per share since the buyout, a major surprise in the U.S communication market. However, the deal was not without a cost to Verizon. The company faced a major downgrade risk from S & P due to its high debt, with its credit rating being downgraded by one level and risking sinking deeper towards
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The internship program was therefore an all-good program for me. Upon reporting to my post, I was assigned to the Growth and Expansion department of the company. The company in question was an advertising firm whose business had to do with public and media advertisement.
What are Anti-Trust Laws Anti-trust laws are variously referred to as competition laws and they are basically sets of rules and regulations that have been formed with the main intention of promoting what can be perceived as fair competition between various competitors in a market place.
One of the most celebrated mergers in recent history is the merger of two of the largest commercial and defense aerospace companies: Boeing and McDonnell Douglass. In fact, it is actually said by economic and business analysts that few mergers in recent years has attracted so much attention…merger between The Boeing Company and McDonnell Douglas Corporation…this…created the world’s largest aerospace company and the second largest air defense supplier, and combined the last two remaining commercial jet airplane manufacturers in the United States.
The ever growing world of business uses different restructuring techniques in order to improve their market share and beat competition. The ways to acquire or become part of an organization are mergers, acquisition and sometimes hostile takeovers. “The purchase of one corporation by another is called merger.
This change aims at increasing the profitability of an organization. There are various forms of acquisitions. Some are hostile while others are based on mutual understanding and negotiations. A merger can be public or private. Mergers and acquisitions apply when a company rethinks its strategy in doing business.
Research paper on recent mnc acquisition
Alcon offers a wide range of unparallel products in the eye care segment starting from nearsighted contact lens for children to cataract implantation of grandparent. The company’s innovative products help people all over the world to cure eye diseases and disorders.
It also extracts bitumen and upgrades it to vacuum gas and synthetic crude oil (Marathon Oil Corporation annual reports, 2008). Henry M Ernest founded Ohio Oil Company in 1887. Standard Oil Trust then obtained it. The company later split up with Standard Oil Trust and bought Transcontinental Oil Company.
Additionally, the mergers and acquisitions are taking place all across the world. For instance, KPMG reports that mergers and acquisitions deals in Nigeria have noted steep increase of 379 percent in value in a single year from 2011 to 2012. Nigeria concluded 37 deals of USD 7.415 billion in 2012 as compared to 29 deals with USD 1.548 billion of value in 2011 (Nwannekanma, 2013).
Microsoft is a manufacturer of computer packages and softwares; InteliCloud is also a manufacturer of computer softwares.
The corporations that have been involved in a merger and acquisition are Microsoft and Nokia. Nokia is a company from Finland and it
This form of corporate management strategy is rampant in lucrative industries that have homogeneity of goods, hence stiff competition. In this kind of industry, mergers and acquisitions play a critical role in helping the
6 Pages(1500 words)Research Paper
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