Idea Cellular’s Acquisition of Spice Telecom  

Oleh:

Srinivasan, R.

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: Asian Journal Of Management Cases vol. 09 no. 02 (2009), page 93–118.
Topik: Idea Cellular; Spice Telecom; TM International; merger; Indian Telecom Industry; regulation.
Fulltext: Asian Journal of Management Cases-2009-Srinivasan-93-118_Ros.pdf (331.54KB)

Isi artikel

The case discusses the antecedents before the merger between Idea Cellular Ltd and Spice Telecom. It describes the evolution, fast growth and structure of the Indian mobile telecommunications industry; provides a brief profi le of the fi rms involved; describes the merger/deal and highlights the issues involved (especially regulatory) in completing the merger. Idea Cellular Ltd., part of the diversifi ed Aditya V. Birla Group, had announced its intent to acquire Spice Telecom, an independent mobile services company that was operating in two circles—Punjab and Karnataka, but held licenses in multiple circles. As part of the deal, TMI (a subsidiary of Telekom Malaysia) swapped its stake in Spice Telecom to acquire stake in Idea Cellular. However, the regulator, Department of Telecommunications (DOT) raised objections on the merger citing the revised M&A guidelines that restricted a company from owning more than a 10 per cent stake in two licenses in the same circles. This case provides learners with opportunities to (a) appreciate the complementarities of the M&A intent of all the fi rms involved and (b) analyze the deal structure and critically evaluate the options before the two companies in addressing the DOT objections.

Opini Anda

Klik untuk menuliskan opini Anda tentang koleksi ini!

Kembali