Sonaecom takeover of Portugal Telecom (B)
Most management teams are caught off guard when their company becomes the target of a takeover. However, PT’s management team had seen it all from the other side before and knew just what to do. They viewed this challenge professionally. After declining the €9.50 bid, Portugal Telecom’s board formed a special committee to lead the defense strategy. However, the board also confirmed it was not saying no to a deal: “We won’t defend at any price. We will do what is right for shareholders,” stated Zeinal Bava, PT’s CFO.
This case discusses: (1) Valuation and M&As, synergies stand alone and integrated with Sonaecom. (2) How different ownership structures influence valuation methods. (3) Investor relations: how to shape, manage, match and beat investor expectations. (4) Defense strategies in M&As.
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