Mega Mergers and Acquisitions: Case Studies from Key Industries

253 Pages·2012·0.64 MB·English

by  B. Rajesh Kumar (auth.)

Mega Mergers and
Acquisitions
Case Studies from Key Industries
B. Rajesh Kumar
Mega Mergers and Acquisitions
Also by B. Rajesh Kumar
MERGERS & ACQUISITIONS: Text and Cases
GROWTH STRATEGIES OF INDIAN PHARMA
Mega Mergers and
Acquisitions
Case Studies from Key Industries
B. Rajesh Kumar
Institute of Management Technology, Dubai, UAE
© B. Rajesh Kumar 2012
Softcover reprint of the hardcover 1st edition 2012 978-1-137-00589-2
All rights reserved. No reproduction, copy or transmission of this
publication may be made without written permission.
No portion of this publication may be reproduced, copied or transmitted
save with written permission or in accordance with the provisions of the
Copyright, Designs and Patents Act 1988, or under the terms of any licence
permitting limited copying issued by the Copyright Licensing Agency,
Saffron House, 6–10 Kirby Street, London EC1N 8TS.
Any person who does any unauthorized act in relation to this publication
may be liable to criminal prosecution and civil claims for damages.
The author has asserted his right to be identified as the author of this work
in accordance with the Copyright, Designs and Patents Act 1988.
First published 2012 by
PALGRAVE MACMILLAN
Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited,
registered in England, company number 785998, of Houndmills, Basingstoke,
Hampshire RG21 6XS.
Palgrave Macmillan in the US is a division of St Martin’s Press LLC,
175 Fifth Avenue, New York, NY 10010.
Palgrave Macmillan is the global academic imprint of the above companies
and has companies and representatives throughout the world.
Palgrave® and Macmillan® are registered trademarks in the United States,
the United Kingdom, Europe and other countries.
ISBN 978-1-349-43487-9 ISBN 978-1-137-00590-8 (eBook)
DOI 10.1057/9781137005908
This book is printed on paper suitable for recycling and made from fully
managed and sustained forest sources. Logging, pulping and manufacturing
processes are expected to conform to the environmental regulations of the
country of origin.
A catalogue record for this book is available from the British Library.
A catalog record for this book is available from the Library of Congress.
10 9 8 7 6 5 4 3 2 1
21 20 19 18 17 16 15 14 13 12
To my beloved wife
Sreelatha
This page intentionally left blank
Contents
List of Tables viii
Preface x
Acknowledgments xiii
1 Mergers and Acquisitions in the Pharmaceutical Industry 1
2 Mergers and Acquisitions in the Telecommunications
Industry 60
3 Mergers and Acquisitions in the Technology Sector 96
4 Mergers and Acquisitions in the Entertainment
and Media Sector 130
5 Mergers and Acquisitions in the Electrical and Electronics
Sectors 158
6 Mergers and Acquisitions in the Energy Sector 166
7 Mergers and Acquisitions in the Finance Sector 181
8 Mergers and Acquisitions in the Metal Sector 203
9 Mergers and Acquisitions in the Automobile Sector 210
10 Mergers and Acquisitions in the Consumer Goods Sector 215
11 Mergers and Acquisitions in the Airline Industry 226
References 231
Index 233
vii
List of Tables
1.1 Largest mega mergers 4
1.2 Key performance indicators of GSK 11
1.3 Financial highlights of Novartis ($ billion) 28
1.4 Financial highlights of Pfizer ($ billion) 29
1.5 Premerger highlights of Pfizer/Pharmacia 37
1.6 Financial highlights of AstraZeneca ($ million) 39
1.7 Financial highlights of Bayer HealthCare (a million) 52
1.8 Financial highlights of BMS ($ million) 54
2.1 World’s largest telecom M&A deals 64
2.2 Other big deals in telecom 64
2.3 Major deals by LDDS 67
2.4 Financial highlights of Verizon Communications
($ million) 69
2.5 Financial highlights of SBC Communications ($ million) 74
2.6 Financial highlights of Ameritech ($ million) 75
2.7 Financial highlights of AT&T ($ million) 82
2.8 Financial highlights of Vodafone, 2008–2010 (£ million) 84
2.9 Financial highlights of Vodafone, 1999–2009 (£ million) 89
3.1 Biggest technology deals 99
3.2 Financial highlights of HP ($ million) 101
3.3 Financial highlights of HP/Compaq in the year of their
merger 102
3.4 Financial highlights of Google ($ million) 103
3.5 Financial highlights of Motorola Mobility in 2010 103
3.6 Other major deals by Google 105
3.7 Financial highlights of Oracle ($ million) 107
3.8 Financial highlights of Microsoft ($ million) 111
3.9 Biggest deals by Microsoft 111
viii
List of Tables ix
3.10 Financial highlights of Intel ($ billion) 115
3.11 Financial highlights of IBM ($ million) 120
3.12 Financial highlights of Yahoo! ($ million) 124
4.1 Biggest deals in media and entertainment 134
4.2 Financial highlights of Time Warner ($ million) 135
4.3 Financial highlights of Vivendi Group (in millions
of Euros) 140
4.4 Financial highlights of Viacom ($ million) 146
5.1 Financial highlights of Siemens (in millions of Euros) 159
5.2 Other notable acquisitions by Siemens 161
5.3 Financial highlights of Cisco Systems ($ billion) 162
5.4 Biggest acquisitions by Cisco Systems 162
6.1 Global M&A activity in the energy sector 167
6.2 Largest M&As in the energy sector 169
6.3 Financial highlights of ExxonMobil ($ million) 170
6.4 Financial highlights of BP Amoco ($ million) 173
7.1 Biggest finance sector deals 185
7.2 Financial highlights of Bank of America ($ billion) 185
7.3 Citigroup Inc. and subsidiaries: Financial highlights
($ billion) 191
8.1 M&A deals in the global steel industry 204
8.2 Significant acquisitions made by Mittal Steel 205
10.1 Major M&As in the consumer goods industry 216