The Analysis of Synergy Generated from Merger and Acquisition - The Case of Telecommunication Industry

• Main Authors: Shu-Chen Wang, 王淑真
• Other Authors: 李存修
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/75583294695530109748

碩士 === 國立臺灣大學 === 財務金融學研究所 === 97 === With the emerging new technologies and deregulation/liberalization, telecommunication industry has been changing significantly. International telecom companies strive to increase their competitiveness through either business collaboration or merger & acquisition (M&A) and redefine their target markets and competitors accordingly. Sizable M&A cases in Taiwan telecom industry mostly occur during year 2000~2005, most of which are horizontal mergers. Starting from 2007, with the international trend of “Fixed-Mobile Convergence ( FMC)” , some domestic fixed line operators and mobile operators such as TWN&TFN and APW&APF acclaimed to merge in order to achieve stronger market competitiveness and synergy through resource integration and larger economies of scale. This case– FET merges NCIC and DU, is actually the very exemplary one. The scope of this research mainly includes the merger cases of wireless and wireline operators in USA, Taiwan and China. In-depth researches on company’s background, market competition position, financial & operational status, motivation of merger and its expected synergy are conducted on the selected cases to be as reference to our research case. Then we try to evaluate and analyze potential synergy on the research case from four aspects: operation, finance, taxation and market. Ignoring possible macro-economic impact and assuming that organizational & culture conflicts, loss of talents, and possible company’s inadequate strategy will be resolved by corresponding measures and time, the research results show positive to the merger’s shareholders with NPV of synergy of NT$7.5bn. Operational synergy is found to be the major source of synergy and expected to be increased with the merging progress going more smoothly. Without taking into account possible financial leverage, financial synergy is expected to be incurred as occurrence of operational synergy. Market synergy is in-significant and we don’t see taxation synergy in this research case.