Mergers and acquisitions
The phrase “mergers and acquisitions” (M&A) refers to the aspect of corporate strategy whereby companies are bought, sold or combined. Andrade (Andrade, 2001) states that this aims at financing, assisting and enabling a growing company to continue growing without necessarily establishing another business entity. A merger refers to the combination of two companies to form one larger company. An acquisition is whereby one company buys another. In most cases, an acquisition does not lead to the creation of a new name for the company.
The company that acquires the other may maintain the name of the company or may change it. Gutfield (Gutfield, 2002) points out that the recent mergers and acquisitions in the corporate world are motivated by various reasons. A good example of a merger and acquisition that has taken place in the telecommunication industry is that of AT&T and the BellSouth Corporation. The M & A occurred between these two companies in 2006. In this paper, the M & A between AT & T and the Bell South Corporation will be discussed. The success or failure of the merger and acquisition between these two companies will be evaluated.
Other aspects of the company that will be discussed are the
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In the US, the company has grown to lead in providing high-speed DSL internet. Other services that the company offers are directory publishing, advertising services, as well as phone services. Before its merger with the BellSouth Corporation, the AT & T remained one of the largest providers of wireless service in America. The AT &T was formed after the SBC communications Inc and AT & T Corporation in 2005 came together. After the merger, the new name of the company that was adopted was AT & T Incorporation.
The merger deal between the AT&T and Bellsouth Corporation was finalized in 2006, which brought together Cingular wireless which they jointly owned. Due to the joint ownership of Cingular wireless by the two companies, they had worked closely together before the merger. The AT & T was formed in early 1980s, and was then referred to as the South Western Bell Corporation. According to Kleinfield (Kleinfield, 1981), it was one of the seven Bell operating companies which were also known as the “Baby Bells”. The Southern Bell Corporation in 1993 had its headquarters moved to San Antonio, Texas.
This was followed by the company’s initiative to change its name to SBC communications, Inc. This change aimed at reinforcing the company’s global and national reach. The SBC communication Inc. then acquired Baby Bell Pacific Telesis, Nevada and California regional Bell operating companies, and then the Southern New England Telephone. The expansion of the SBC communications Inc. continued with its merger with Ameritech in 1999. The merger of the SBC communications with AT & T Corporation was finalized in November 2005 and led to the formation of AT & T Inc.
The AT & T Inc. acquisition of the BellSouth corporation that occurred in 2006 led to the consolidation of the yellow pages. com and Cingular wireless ownership. These two were joint ventures by the two companies, and after the merger, they were offered under the AT & T Company’s name. The BellSouth Corporation had its head quarter in Atlanta, Georgia. The company was one of the original Regional Bell companies in the US and was formed after the need for the American Telephone and Telegraph Company to divest arose.
It was founded in 1983. As stated in the company’s website (Bellsouth Corporation. www. bellsouth. com), the company has been involved in providing internet, telephone, and television services. The Bell South Corporation was the last company of all the Regional Bell operating companies to retain its original corporate name. In addition; it was the last to retain a Bell Logo. The company had undertaken its operations in New Zealand and Australia, under the name BellSouth New Zealand Limited and Bell South Australia Limited respectively.
In 1998, the Bell South New Zealand Limited was bought by Vodafone. The company was for many years recognized for its good customer service and offered the most innovative and comprehensive package of data services and voice in the market. BellSouth Corporation offered businesses with reliable and secure long distance voice, as well as data networking solutions. Through the yellow pages, the company showed its success in providing people with print and online directory advertising. After merging with AT & T, the wireless services are provided under the AT & T Inc. name.
The company’s state-wide operations centers in New Orleans, Atlanta, Birmingham, Miami, Louisville, Nashville, Charlotte, and Columbia. Through its joint venture with the AT & T Corporation, the Bell South Corporation was able to generate a large percentage of its revenue. The company was involved in increasing the broadband penetration in the consumer market. BellSouth Corporation considered the fostering of an inclusive environment and diversity as very important in ensuring a competitive advantage in the market. The AT & T Inc. has become one of the largest telecommunication companies in the US and in the world.