The Acquisition of France Telecom S.A and Orange Plc free essay sample

The merger and acquisition between two European Telecommunication companies This report consist of six parts The first part briefly analyzes the market position of sample cross-border acquisition companies: France Telecom and Orange Plc and finds out their pre-acquisition industry aspect. Second part determines the motives for merger and acquisition of these two companies. How synergy plays an important role in this stage. Third part finds out the respective strategies each company adopted, how acquirer uses proper tactics to takeover other one and how the vulnerable company defenses its position. Within this, the report also presents the decision making that why the Board of Directors of the target company would accept the bid. Fourth part reviews the possible methods that the companies could use to finance the merger or acquisition. Fifth part analyzes the market share movement in terms of pre-merger, during merger, and post-merger. And also according to the chart to find out if the merger or acquisition benefits to shareholders. We will write a custom essay sample on The Acquisition of France Telecom S.A and Orange Plc or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Final part discusses the possible factors besides the market share movement that influence shareholder wealth. In some extent analyze if the merger or acquisition served to help the maximization of shareholder wealth. Table of Contents Executive summary Introduction An overview of the pre-merger market positions Motives for the merger and acquisition The defenses and attack strategies Financing methods of merger and acquisition Share price analysis Evaluation of merger and acquisition Conclusion Reference Bibliography Market power exists when the firm can sell its products over the existing competitive market price or when its manufacturing, distribution, and service costs are lower than competitors?. Michael A. H. Jeffrey S. H. R. Duane I. (P151, 2001) argued that the effectiveness of decisions made and actions taken result in the firm developing market power in terms of both revenues and costs. Market power is a product of the firms size, the degree of sustainability of its current competitive advantages, and its ability to make decisions today that will yield new competitive advantages for tomorrow.