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Mergers, Acquisitions, Alliances and Synergies Case Study
Case Title:
Vodafone's Inorganic Growth Strategies : The Payoffs
Publication Year : 2004
Authors: Dakshi Mohanty, T Phani Madhav
Industry: Wireless Network Operators
Region: UK USA
Case Code: MAA0025
Teaching Note: Available
Structured Assignment: Available
Abstract:
After two multibillion acquisitions in the late 1990s, one each in the US and Europe, Vodafone poised itself to become a major wireless phone services provider in the world. However, the company's inability to integrate its acquisitions resulted in a saga of losses since 2000. In 2003, CEO (Chief Executive Officer) Christopher Gent, who led the company through the acquisitions and the losses alike, stepped down and handed over the debt-ridden company to Arun Sarin. Even the new CEO continued the acquisition spree, much against the wishes of the disgruntled shareholders, and a $16 billion loss was recorded in 2003.
Pedagogical Objectives:
- To discuss Vodafone's acquisition strategy in the volatile mobile telecommunication industry and its payoffs.
Keywords : Vodafone; Airtouch;Mergers, Acquisitions, Alliances Case Study; Mannesmann; Christopher Gent; Arun Sarin; Acquisitions; 3G (third generation) technology; Japan Telecom; China Mobile; Vodafone Live!; Verizon Wireless; Dividends; Shareholders; Share buybacks; AT&T Wireless