Management & Marketing (Jan 2008)
DEVELOPMENT APPROACHES AND STRATEGIC MOVEMENTS WITHIN THE MOBILE TELECOMMUNICATION FIELD
Abstract
In February 2000, when Vodafone took control of the British operatorOrange, they had to split, because Vodafone owned two mobile telephonylicenses in the same country – Great Britain – fact that was interdicted by theEuropean legislation. So, on 30th of May 2000, France Telecom announcedthe purchase of the mobile telephony operator – Orange public limitedcompany (plc) – from Vodafone for the amount of 40 billion euro.Focusing on the fusion – acquisition as a way of development for the mobiletelecommunication companies, this paper begins with a theoretical analyze ofsome concepts related to the external growth. The example taken reveals theadvantages and disadvantages of the fusion – acquisition France Telecom –Orange as well as the dangers that an enterprise has to face when it decidesto appeal to the external growth.
