Merger Paper

Mergers are a natural part of the business world, any(prenominal) companies win and some companies lose. A coalition is defined as confederacy of two impregnables into one, with the acquirer assuming assets and liabilities of the target firm (Brealey, Myers & group A; Marcus, 2003). The potential advances when merging two companies into one is the order can become stronger, competitive and more diverse inwardly its market. The following paper will examine the financial risk, growth, positiveness of the merger between AT&T and BellSouth. The merger between AT&T and BellSouth, which jointly consume Cingular Wireless, would better able to speed the meeting of new and improve services for consumers and businesses, and embrace the industrys demand in the world of global communication. BellSouth is a major leader in long distance and Internet revenues, as AT&T is a leader in the wholesale operations; this combination can leapfrog the conjunction to different heights. This combination would benefit the company in many different ways, such as, the sizable opportunities in saving money in expenses in network and sales operations, IT and procurement, thats two-thirds of the companys quantity expense.

Another major benefit is the simplified ownership and in operation(p) structure of Cingular Wireless and completelyows the company to move to a whiz brand for wireline and wireless for business and for consumers. The last major benefit is the accelerated growth or product innovation that the company can obtain by using the strengths of the different organizations. in that location is a con to this merger and that is called streamlining, anytime a merger is undefiled the workforce will always be affected. The merger shortened 12,000 jobs due to economic pressures, a changing business mixing and more streamlined organizational structure. On December 29, 2006, AT&T purchased BellSouth for $ 86 billion dollars; the merger was an all stock transaction, with a fixed exchange rate of 1.325, at the close of trading on December... If you want to get a full essay, order it on our website: Ordercustompaper.com

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