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Case Study

Sonaecom takeover of Portugal Telecom (C)

By Nuno Fernandes

15 pages

June 2012

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Reference: IMD-1-0356

In February 2007, Sonaecom revised their bid to €10.50 per share. Less than one week later, the PT Board wrote to its shareholders maintaining the rejection of this new offer. So far, most shareholders had not manifested their views publicly. PT had been fighting hard for its independence. But would economic conditions be right for Sonaecom’s takeover bid to succeed? What would it take to convince shareholders to accept? PT’s international roadshow was reaching an end. How would investors react to all this information? Was it time for PT to sit down with Sonaecom?

Learning Objective

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.

Keywords

Finance, Valuation, Mergers and Acquisitions, Diversification, Strategy

Settings

Portugal Telecom, Sonaecom, Services, Telecommunications
2006-2007

Type

Published Sources

Available Languages

English

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