Orange & Telecom Merger
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FINANCIAL STRATEGY 4MBS650 MARCH 2007 SEMINAR TUTOR: PREPARED BY: STUDENT NAME: STUDENT NUMBER: CONTENT 1.0 INTRODUCTION 3 2.0 ANALYSIS OF OTHER COMPANIES IN THE SAME INDUSTRY SECTOR 3 3.0 COMPANY PROFILES 4 3.1 ORANGE 4 3.2 FRANCE TELECOM 5 4.0 THE BID 5 4.1 THE POST MERGER 5 5.0 ECONOMIC REASONS FOR THE MERGER 7 6.0 VALUE AND PERFORMANCE OF THE COMPANIES 8 6.1 HOW WELL IS THE COMPANY PERFORMING? 9 6.2 VALUATION 10 6.3 SUCCESS OR NOT 11 7.0 CONCLUSION 12 8.0 BLIOGRAPHY 13 9.0 FIGURE 1 14 1.0 INTRODUCTION The trend of M&A was extraordinary and boosted by the new economy hype. Between 1974 and 1994 the average number of reported M&As was approximately 2,400 per year. However, five following years increased this trend by almost 50% each year, with almost 13,500 M&As reported in 1999. According the American Management Association (AMA) fifty percent (50%) of all mergers and acquisitions fail within the first two years. In this report, takeover of the UK based mobile company Orange by the French telecommunication company France Telecom in the end of 2000 has been presented. The analysis will be based...


