Mergers, Acquisitions and Takeovers Case Study

Telefonica’s Strategy for Growth in Europe: Acquisition of O2?

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Abstract:
In 2005, the Spanish telecom giant, Telefonica made a bid for O2, a British wireless carrier. The bid created headlines for being the second largest ever all cash offer in telecom history. With consolidation taking place on a major scale in the European telecom sector, Telefonica too looked for a channel for expansion in the booming sector. The case chronicles the expansion strategies of Telefonica and the reasons behind its bid for O2.

Pedagogical Objectives:

• To make students understand telecommunications industry worldwide
• Spanish telecom giants acquisition of O2, its strategies behind it.

Keywords : Mergers,Acquisitions,Alliances Case Study;Telefonica; O2; Europe; Latin America; Telecommunication; Spain; Acquisition; Telefonica Moviles; Cesar Alierta; Peter Erskine

Contents : 
Telefonica: A brief history
Spreading in Latin America: Continuing Acquisitions
Consolidation in the European Telecom Sector
Acquisition of O2 – a channel to Europe
The three divisions of Telefonica Moviles
Financial highlights of O2 in 2005
Wireless-customer breakdowns for Telefonica and O2 by region