1a.

Value Vodafone 17 dec = sharesVodafone*priceVodafone = 154186,4042
Value Mannesmann 17 dec = sharesMannesmann*price Mannesman = 121188,6
Value combo 17 dec = 275375,0042

Value Vodafone 21 oct = sharesVodafone*priceVodafone = 130206,9767
Value Mannesmann 21 oct = sharesMannesmann*price Mannesman = 75276,765
Value combo 21 oct = 205483,7417

Indicated synergies = (275375,0042 - 205483,7417) / 0.6 = 116485,4374

We devided the difference in combined shareprices by 0.6, as the shareprices only reflect 60% of the synergies. That means the indicated synergies are 116 billion.


1b.

2000E 2001E 2002E 2003E 2004E 2005E 2006E Terminal Value
Operating profit AfterTax (I) 0 58,5 159,9 447,2 639,6 793,65 967,85 (II)26884,72
Savings 0 60 147 360 420 469 506
Total Synergies AfterTax 0 118,5 306,9 807,2 1059,6 1262,65 1473,85
PV Total Synergies (III) 110,1301 265,0772 647,9542 790,4836 875,4304 949,6852 (IV) 17323,35

Total......

Join Now to view the rest of this term paper!
Members: Login to view this research paper.

Title: Vodafone Mannesman Case
Approximate Word Count: 684
Approximate Pages: 3 (250 words per double-spaced page)

With the Term Papers Lab Membership Pass, you get instant access to every essay on this site, including this essay on Vodafone Mannesman Case, for as long as you remain a member.

Other essays sites charge almost $100 for a single term paper. At Term Papers Lab, you can get instant access to over 100,000 research papers for as little as $29.95!