Orange and T-Mobile Merger in the UK
|
|
ICMR HOME | Case Studies Collection
Case Details:
Case Code : BSTR354
Case Length : 14 Pages
Period : 2007-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : Orange UK / T-Mobile UK
Industry : Telecom
Countries : UK
To download Orange and T-Mobile Merger in the UK case study
(Case Code: BSTR354) click on the button below, and select the case from the list of available cases:
Price:
For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges
» Business Strategy Case Studies
» Case Studies Collection
» Business Strategy Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Area Specific Case Studies
» Industry Wise Case Studies
» Company Wise Case Studies
Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
|
|
<< Previous
Introduction Contd...
|
Commenting on the merger, Gervais Pellissier, CFO of France Telecom, said,
"By combining our operations in the UK, we anticipate the long-awaited consolidation in one of Europe's most competitive markets, thereby creating a well positioned player.
This will reinforce fair competition and will provide strong benefits for our
customers through improved coverage, quality of service, and an enhanced
capacity to develop new services and technologies. Our shareholders will benefit
from higher profitability and an immediate cash flow per share accretion without
impacting the overall indebtedness of the parent companies."7
|
|
The synergies from the merger were expected to benefit both Orange and T-Mobile, according to experts. The JV would enable France Telecom to fortify its presence in the UK telecom market without incurring additional costs or debts. Besides, it would help Orange attain efficiencies in operation and increase its market share in the UK.8
The venture was expected to arrest the decline in the brand value of T-Mobile and thus benefit the company. Besides, Deutsche Telekom also aimed to cater to its customers with improved customer service.
Orange went ahead with the deal with T-Mobile largely due to the perceived synergies between the two companies. The deal swung in favor of Orange since it was the only player that proposed a merger with T-Mobile; other bidders such as O2 and Vodafone had proposed to buy T-Mobile...
Excerpts
>>
|
