Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Vodafone releases its half-year financial results. Vodafone may have to lift
its offer for Mannesmann to win shareholders over in what would be the
world's biggest ever hostile takeover battle. Synergies Claimed
Implications Hurdles Vodafone Must Overcome Investors were worried
about the prospect of Vodafone paying over the odds and shares in the
company slipped 3.75p to 292.5p on Monday. Shares in Mannesmann rose
17.68 euros (11.24) to 202.98 euros (129) on the German stock
market.On 19 Nov 1999, Vodafone launched a 79bn (124bn euro) hostile
takeover bid for German mobile phone company Mannesmann followed by
Mannesmann's rejection of a friendly merger offer. Which is set to be the
world's biggest ever contested takeover battle till date.Valuation:Value
offered per share: 240No. of Shares Outstanding: 0.5179 billion Total
value of the company: 240 X 0.5179 billion 124 b If successful this
would result in Mannesmann shareholders owning 47% of the combined
group. The offer represented a 20% increase on Vodafone's initial bid. This
estimate excludes the value of Orange PLC, since Mannesmanns offer to
Orange was not yet bounded. Deal would turn Vodafone AirTouch into the
world's biggest mobile phone company The offer would create an
unmatched European mobile phone network, and a global brand. The
merger would generate savings of more than 1 bn by 2004. The deal
would add the UK to Mannesmann's existing mobile businesses in
Germany, France and Italy. A merger would create a company with mobile
phone interests in 15 European countries with 30 million customers.
Worldwide the group would have the equivalent of 42 million customers.
Deal would enable data business via mobile phones. Meanwhile,
Mannesmann continued to try to strengthen its defences by entering into
talks with France's Vivendi about acquiring a majority stake in Cegetel,
France's second-largest mobile phone operator. Shares in Mannesmann
have risen 119% since October. On Feb 2, 2000 they reached a new high
of 310 euros, ahead of Vodafone's 300 euro offer. Vodafone AirTouch
showed a killer instinct in putting together the resulting 112bn ($182bn)
deal. Vodafone AirTouch and Mannesmann have agreed terms for a
friendly merger. The Mannesmann directors are said to be about to
approve the deal Mannesmann shareholders are expected to get 49.5% of
the merged company Vodafone wants to share the risk of achieving
synergies with Mannesmann shareholders The merger means less
competition in UK
other european markets are very valueable
If the deal is not accepted, Vodafone and Mannesmann would become
competitors troughout Europe and the companies may become less
valueable then before the merger was proposed
system has only one tier. The board members are elected by the
shareholders, are known for their business abilities and usually have a
vested interest in the company. Although the number of directors can vary
substantially between companies, at least 50% need to be independent.
As a result, Anglo-Saxon boards are more likely to act in the best interest
of their shareholders since their interests are aligned. Closure of the Deal
Vodafone financed the bid by issuing bonds of approximately a 135 billion
euro 112bn deal, Mannesmann shareholders got 49.5% of the merged
company, with Vodafone providing 58.96 of its shares for each
Mannesmann share. The revised deal values Mannesmann shares at 353
euros each. The total value of the Vodafone group on the stock market,
after paying $183bn for Mannesmann in shares, will be $365bn (228bn),
making it by far the largest company on the London stock market and the
fourth-largest in the world. The merger creates a huge IT group under
Vodafone chief executive Chris Gent, with some 42 million customers
and interests ranging from the Americas and Australia through the UK,
France, Germany and Italy.
However, Orange, which was bought by Mannesmann, will have to be put
up for sale to satisfy competition regulators in the UK.
Also Vodafone split off Mannesmann's engineering and automotive
operations into a separate company. Revenue: 46.417 billion (2012)
Operating income: 11.187 billion
Profit: 6.957 billion
Total assets: 139.57 billion
Total equity: 76.935 billion
Employees: 86,373 thank you for listening