M&a in Telecom Sector with Special Reference to Voda Case

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ACKNOWLEDGEMENT

A project cannot be completed alone. It requires the effort of many individuals. I take this opportunity to thank all those people who helped me to complete this project.

I express my sincere and deep gratitude to Father Dominic Savio, Vice Principal (St. Xavier’s College, Kolkata) for giving me the privilege of being part of the ‘Project’ in partial fulfillment of the requirement in regard to B.com 3rd year degree course.

I express my sincere gratitude to Prof. M. Dey for giving us the opportunity to undergo this project. I further thank her for lending a helping hand when it came to solving my problems related to this project. This project would not have been possible without her valuable time and support.

This project is an attempt to talk about the MERGERS AND ACQUISITION SCENARIO IN INDIA.

Last but not the least I am very much thankful to all those people whom I have approached and collected data from.

Serial No.| INDEXContents| Page No.|
1.| ABSTRACT| 3|
1.| INTRODUCTION| 4-11|
1.A| Background| 3|
1.B| Brief idea of Mergers and acquisition| 5|
1.C| Literature Review| 7|
1.D| Objective of the study| 9|
1.E| Research Methodology| 10|
2..| THERITICAL ASPECT OF MERGERS AND ACQUISITION| 11-19| 3.| MERGERS AND ACQUISITIONS IN TELECOM SECTOR| 20-23|
4.| CASE STUDY-MERGER OF VODAFONE AND HUTCHISON ESSAR LTD| 24-38| 4.A| Profiles of the company| 24|
4.B.| Vodafone- Essar: The case| 26|
4.C| Why Hutch wanted to exit?Why Vodafone wanted to acquire Hutch?| 28| 4.D| Financial position of Vodafone after merger| 31|
4.E| Taxation issue in Vodafone – Hutch deal| 34|
5.| CONCLUSION OF THE PROPOSED STUDYLIMITATION OF THE PROPOSED STUDY| 39-40| 6.| BIBLIOGRAPHY| 41|
ABSTRACT

1. INTRODUCTION

A. BACKGROUND:

The history of merger waves spans the twentieth century during which time there have been several merger waves in the US, and UK each of which has been distinctly different from one another. Merger Waves in United States:

Historians refer to five waves of mergers in the U.S. starting from the 1890s. Although, the starting date and duration of each of these waves are not specific, those had ended in war or in panics; crashes or other financial disasters are somewhat more definite. Indeed, it may be more accurate to say that mergers are an integral part of market capitalism and we have had continuous merger activity since the evolution of the industrial economy in the late 19th century, with short interruption when fundamental forces turned exogenous merger factors negative. * The First Merger Wave (1897-1904)

* The second Merger Wave (1922-29)
* The Merger Wave During 1940s
* The Third Merger Wave (1963-1970)
* The Fourth Merger Wave (1981-1989)
* The Fifth Merger (Mega Merger) Wave: 1992 onwards
Merger waves- The Indian experience:
In earlier years, India was a highly regulated company. To set-up an industry various licenses and registration under various enactments were required. The scope and mode of corporate restructuring was, therefore, very limited due to restrictive government policies and rigid regulatory framework. Consequent upon the raid of DCM Limited and Escorts Limited launched by Swaraj Paul, the role of financial institutions became quite important. In fact, Swaraj Paul’s bids were a forerunner and constituted a “WATERSHED” in the corporate history of India. The Swaraj Paul episode also gave rise to a whole new trend. Financially strong entrepreneurs made there presence felt as industrialists – Ram Prasad Goenka, M.R.Chhabria, Sudarshan Birla and Dhirubhai Ambani were instrumental in corporate restructuring. The real opening up of the economy started with the Industrial policy, 1991 whereby ‘continuity with change’ was emphasized and main thrust was on relaxations in industrial licensing, foreign investments, and transfer of...
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