C/F/69. Mergers and Acquisition in telecommunication industry: Vodafone Mannesmann case

This paper performs analysis of Mergers and Acquisition (M&A) and its worth for value creation. Vodafone Mannesmann merger case was taken as a case to evaluate. Firstly, theoretical suggestions about the M&A were examined, and the types and motives behind the M&A. Next, telecommunication industry was examined and descriptions of Vodafone and Mannesmann were performed. The restructuring method evaluation was made on the base of Vodafone's pre- and post - merger key ratios. Such ratios as ROE, ARPU, liquidity and leverage have been examined. Market data, such as share price and EPS were also taken as an aid. The main competitors of Vodafone, like Orange and Cable and Wireless were also examined in terms of the M&A relation and their performance. Finally, the conclusion was made about the M&A's value for a company, backed up with Vodafone Mannesmann case. An agenda for future research to investigate alternative ways for competition sustainability was developed.