Vodafone Mannesman Case

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   & ...
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