Mergers & acquisitions

: the case of Microsoft and Nokia

Abstract

Due to the financial downturn and the emergence of new devices in the global handset market has led companies to change their business strategies. Indeed, Mergers and Acquisition are considered one of the best strategies to increase shareholder value despite its hardship to be well-implemented. For this reason, a consolidation between Microsoft and Nokia may create new opportunities to challenge the market. Thereby, the focus of this dissertation will be the calculation of the additional value created by combining both firms bearing in mind the companies’ financial situations. All this considered, Nokia’s average share price during the last year is considered to have a 0.14% upside potential and synergies are estimated around 13% of Nokia’s average market capitalization. As a result, an offer at 19.4% premium over Nokia’s average market capitalization will be suggested with 100% in cash.

Date of Award	2011
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Peter Iordanov Tsvetkov (Supervisor)