Acquisition of mannesmann by vodafone

Second, Vivendi feared that Mannesmann might use it as a stalking-horse to wring improved terms from Vodafone.

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Acquisition of mannesmann by vodafone

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The Germans courted Hutch persistently for a whole year.

Vodafone and mannesmann merger pdf

Kinzius says: "A potential transaction with Vivendi was very attractive for us as it fitted exactly our strategy of European, integrated, controlled stakes. And in January, Horn-Smith was frequently in Paris to flesh out the alliance that Messier would eventually recommend to his board. Messier is unlikely to tolerate backsliding by Vodafone on MAP: a pan-European internet portal is the closest thing the French group possesses to a bright future. The last thing we wanted to do was to make an offer that people thought was desperate and defensive. Other differences concerned the timetable for Vivendi to dispose of its large water and sewerage business, and some points in the governance agreement. The AFL-CIO believes value is created over the long-term by partnerships among all a corporation's constituents -- workers, investors, customers, suppliers and communities. In a press statement , the president of AFL-CIO, John Sweeney, stated that the investment managers of the fund has been asked to oppose Vodafone's hostile bid for Mannesmann, because: "the managers of worker capital have a responsibility to invest those funds in the long-term interests of their beneficiaries. Most important, Mannesmann would agree to a takeover by Vodafone that gave Mannesmann's shareholders Vodafone had to act now or for ever hold its fire. Goldman managing director Alex Dibelius had reportedly said to Becker: "Look, we're paying e billion for this company and we want control now. And the fact that it was limited to wireless telephony meant it couldn't supply bundled services. Mannesmann's supervisory board got the formal agreement it wanted, albeit in abridged form. However, not long after this, Vodafone reneged on the deal and rebranded. They looked at Vivendi and saw a big sewage business. That was only small change compared to the total cost of the actual takeover process, however.

This confirmed Esser's instinct that there was no price at which a takeover made sense for Mannesmann and Vodafone shareholders alike.

One investment banking adviser to Vodafone said: "Germany's hitherto unbreachable corporate world has finally been broken and many are going to be licking their lips.

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And when all the papers were signed, Vodafone had paid billion euros for Mannesmann, making it the most expensive hostile takeover in history. It calls into question the future of the Mannesmann concept for an integrated strategy to combine mobile, fixed-line, Internet and broadband communications But [the Mannesmann negotiators] were in two minds, because they felt they had given away too much under pressure from Vodafone.

While Esser's defence strategy promised long-term stock growth, institutional investors also had the first months of to worry about.

vodafone mannesmann merger case study pdf
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Vodafone, Mannesmann Set Takeover At $ Billion After Long Struggle