Vodafone

Introduction: By 1999 the management of Vodafone Air Touch strange to take over Mannesmann which would make it the biggest telecom provider in the world. In this paper we survey the Vodafone Mannesmann take over process. schema: QUESTION 1B Year200120022003200420052006Terminal place Operating profit impact9024668898412211489 Taxes 31.586.1240.8344.4427.35521.15 After-Tax Operating impact58.5159.9447.2639.6793.65967.85 nest egg 60147360420469506 heart and soul After tax Synergies118.5306.9807.21059.61262.651437.8526884.721 Present Value Synergies110.59265.08647.95790.48875.43949.6917323.35 Sum PV20962.57 The tot of the present levers calculated before is £ 20 962.57M, which is € 33 097.80M. (rate=1.5789) Notes: You get the bring After tax Synergies by adding the pitch from capital expenditures back to the after-tax operating profit impact. furthermore: The unceasing growth recipe is used to calculate the lowest value of the synergies. The WACC is 7,6% (Goldman Sachs) and the terminal value growth rate is 4%.

We divorce the 2006 after-tax operating profit impact by the cypher (0,076-0.04. This makes 967.85/(0.076-0.04) = 26884.72 We cut the after-tax synergies with the WACC provided by Goldman Sachs Research (7.6%). Present value = Total after-tax synergies / ((1 + WACC)^n). hither n is respectively from 2001 and on : n=1,,n=6) undermentioned persona calculated in POUNDS (perspective Vodafone) (Price/shares of both stocks taken on designation 21.okt (start of rumors merger) By using the synergy calculated above, the nigh formula is used to calculate the exchange ratio in which Vodafone hushed has a positive NPV. Exchange ratio < Pt/Pa(1+S/T) = Exchange rat! ioIf you want to get a dependable essay, direct it on our website: OrderEssay.net

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