Merger between KPN and Telekom Austria

Abstract

The purpose of this dissertation is to value the new company resulting from the merger between KPN and Telekom Austria. Although, there are a number of valuations on the standalone operations of both companies, they lack to value a potential merger between them, and consequently the synergies found in such transaction. During the dissertation, KPN is valued in 27 billion € and Telekom Austria is valued in 7 billion €, whereas the new firm will be valued in 40 billion €, implying synergies worth around 6 billion €. Furthermore, knowing that shareholders always thrive for higher gains, such transaction would allow for that to happen, with América Móvil, the main shareholder in both companies, pushing for the merger to take place.

Date of Award	11 Jan 2013
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Peter Iordanov Tsvetkov (Supervisor)