2. VODAFONE BEFORE
Founded in 1983 as Recal Telecom
Independend in 1991, renamed to VF
After rename, VF grew up
In 1996 VF purchased, “Peoples Phone”with 181
stores and others smaller companies with own
stores.
3. MANNESMANN BEFORE
Founded in 1890
A conglomerate of :
Telecommunication
Plant engineering
Tubes
Engine and chassis technologies
In 1999
23.27 billion turnover
130.860 employees worldwide
4. TODAY: VODAFONE
No Mannesmann anymore
No seamless steel tubes anymore
VF became worlds second largest global acting mobile
telecommunication network company
Market value of 71.2 billion
Wide product range
In all corners of the mobile telecom market e.g.
Mobile
Internet
Video-calls
Broadband home internet via UMTS
Variety of products in mobile phones
5. M&A
Vodafone had undertaken a series of alliances and
mergers and acquisitions (M&A) activity as a strategic
pursuit for growth.
On November 13, 1999, the UK-based Vodafone Air
Touch, the world’s largest mobile phone group,
announced a takeover bid for the German
telecommunications and engineering group Mannesmann
AG on the basis of an exchange of shares between the
two companies.
This offer was the largest unsolicited takeover bid at that
time. On February 3, 2000, Mannesmann board of
directors accepted Vodafone’s offer.
Each Mannesmann shareholder received 58.964
Vodafone shares which gave them 49.5% stake in the
new company.
6. The deal was valued at approximately $180 billion.
The new combined entity had a market capitalization of
$350 billion.
The combined entity became the fourth largest company in
the world in terms of market value after Microsoft, GE,
and Cisco at the time of the deal.
The takeover created the world’s largest mobile phone
operator with 42.3 million customers in Britain, the United
States, Germany, Italy, France, and other markets.
It was one of the biggest horizontal mergers in
telecommunication history.
7. WHY,
Vodafone and Mannesmann had controlling stakes in ten
European markets. The acquisition gave the merged entity
the most extensive wireless coverage in the European
market. ... Vodafone plunged into massive losses after one-
off costs of more than £23.5 billion connected to the
Mannesmann deal.
