Subject category:
Strategy and General Management
Published by:
Asian Business Case Centre
Version: 20 Jan 2004
Length: 16 pages
Data source: Published sources
Share a link:
https://casecent.re/p/19797
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Abstract
In late April 2001, senior management at Singapore Telecommunications Limited (SingTel) was working hard to finalise their position on the proposed acquisition of the Australian firm, Cable & Wireless Optus Limited (Optus), the second largest telecommunication company in Australia. SingTel was hopeful that the acquisition would help the company become the leading integrated communications service provider in the Asia Pacific region and sizeable regional leverage. SingTel''s proposed bid was expected to be around A$15 billion in a cash-and-share offer for a 53% stake in Optus. Other possible contenders for Optus were the Telecom Corporation of New Zealand and Vodafone Group PLC. In order to convince Optus shareholders to agree to the acquisition, it was essential to identify a compelling strategic rationale for the deal as well as significant benefits for both SingTel and Optus. In addition, the significant risk factors in the deal had to be clearly identified.
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Abstract
In late April 2001, senior management at Singapore Telecommunications Limited (SingTel) was working hard to finalise their position on the proposed acquisition of the Australian firm, Cable & Wireless Optus Limited (Optus), the second largest telecommunication company in Australia. SingTel was hopeful that the acquisition would help the company become the leading integrated communications service provider in the Asia Pacific region and sizeable regional leverage. SingTel''s proposed bid was expected to be around A$15 billion in a cash-and-share offer for a 53% stake in Optus. Other possible contenders for Optus were the Telecom Corporation of New Zealand and Vodafone Group PLC. In order to convince Optus shareholders to agree to the acquisition, it was essential to identify a compelling strategic rationale for the deal as well as significant benefits for both SingTel and Optus. In addition, the significant risk factors in the deal had to be clearly identified.