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MERGER IN TELECOMMUNICATION INDUSTRY

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Arun kumar Prof. Aarti
8th Semester, 4th Year
BBA+LLB (H)
Introduction
The service sectors is in the process of an unprecedented restructuring exercise globally and
merger is preferred choice for the same. This phenomenon is prevalent in emerging market
economies like India. Companies like Airtel, Vodafone, Idea, etc. are known as global leaders
in their field. Over the years telecom industry in India has witnessed numerous irregularities in
policy formation & implementation. Time and again industry leaders and investors have
expressed their opinion that the Indian telecom sector is no longer an attractive option for
investment on account of policy uncertainty. Merger helps companies to restructure financially.
For the purpose of research I have taken the recent case of Idea and Vodafone merger.

Statement of Problem
Short-term financial benefits are not realized, long-term advantages may be seen as a valid and
probable reason for the merger or acquisition. This merger was surrounded by complications
ranging from employee bonuses, added debt and forced hands. Achieving acquisition success
has proven to be very difficult, while various studies have shown that 50% of acquisitions were
unsuccessful. The acquisition process is very complex, with many dimensions influencing its
outcome.

Objective of the Study


 Merger and acquisition was done to smooth out cyclical bumps, to diversify.
 It would hedge an investment portfolio.
 The free market is better at identifying talent, and traditional hiring practices.
 Firms that complement and strengthen an acquirer’s capacity to serve customers.
 To identify the trend in large companies.

Materials and Methods
The present research is conclusive, descriptive. The study was conducted on secondary source
of data books, articles, journals, e-sources and the relevant case laws.

Research Question
 What are the documents required for merger of two companies?
 Is there are any risk involved in merger and acquisition?
Review of Literature
In a study of “Merger in Telecommunication Industry” the researcher have studied books.
 Beckenstein, A.R. (1979),Merger Activity and merger theories: An Empirical
Investigation, Antitrust Bulletin,Spring,105-128.
 Walker, M.M.(2000). “Corporate takeovers, Strategic Objectives, and Acquiring firm
shareholder wealth.” Financial management 29(1): 53-66.

Research Methodology
The entire work of this research is Doctrinal which includes both primary as well as secondary
sources. The data will be collected through reliable sources, interview schedule, service
providers, etc.. It will be analysed logically and chronologically on qualitative and quantitative
basis. It will be followed by interpretation of data with examples and case studies.

Primary Source includes the Statutes, Codes, Rules, Regulations, Committee Reports,
Working Papers, Original Judgment.

Secondary Source Includes Scholarly Articles, Books, Law Journals and Other Materials from
the web sources.

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