FinNiche - The Finance Club of IMT, Ghaziabad Presents

THE RISK MANAGEMENT CONCLAVE IMT, GHAZIABAD September 10-11, 2011

KONKURRENCE

Rules of the Game

FinNiche, the finance club of IMT Ghaziabad, brings to you KONKURRENCE (a case study based on risks associated with Mergers and Acquisitions). Terms and Conditions

Only teams enrolled in full time MBA programs are eligible to participate in the event A team can have a maximum of 3 participants from the same college. Each team is allowed to present only one case

Submission Format

The paper must be typed on one side , in Arial font, font size 12 . The case study analysis should not exceed 7000 words Soft copy of the analysis should be sent to finniche.imt@gmail.com on or before September 4,2011 23:59:59

Important Instructions and Guidelines

The teams should mention their full name, case study topic name, contact number and e-mail id. The teams are expected to analyze and present the risks and challenges associated with the particular M&A transactions they have chosen.

The topics for the case study and their brief synopsis is provided in the subsequent pages.

Topics for Case Study

Googles purchase of Motorola Mobility

Android, Googles operating system for smartphones and other mobile devices, has taken the world by storm. In America it now powers nearly 40% of new smartphones, outdoing the platforms of Apple and RIM. Worldwide more than 150m Android devices have been activated, a number that is growing by more than half a million every day. It is still a fact that Android devices are not still as user friendly as Apples iPad and it is becoming increasingly costly for handset makers. It is under these circumstances that on 15th of August Google announced that it would acquire smart phone manufacturer Motorola for $12, 5 billion cash or $40 per share. The price was a huge 63% premium to Motorolas closing price the day before the announcement. Google has spent almost one-third of its cash on the biggest acquisition in its 13-year history. Google has said that it will run Motorola as a separate business and that it will not change in any way how it manages Android.

Why is Google willing to pay a 63% premium? Would Google actually derive value from this transaction or is there a hidden intention behind this deal? According to Google, this deal is about Motorola's 17,000-plus patents to protect the Android operating system from legal challenges. How would Apple react to this news and what does this deal mean to other smart phone manufacturers? What are the other possible legal and regulatory concerns which Google might face from this deal?

Topics for Case Study

Piramal healthcare acquiring 5.5% stake in Vodafone

Piramal Healthcare recently purchased 5.5% stake in Vodafone Essar and called it a financial investment. The Primal-led company announced the purchase of a 5.5% stake in Vodafone Essar for $640 million and an expected return of 20% would be worth $128 million. Why was it important for Vodafone to sell its stake to Piramal? What factors were considered by both Piramal and Vodafone before finalizing the deal? What are the possible risks associated with the transactions going forward? What is the reason for Piramal to invest $640 million in a non related company? Are there any regulatory and legal issues Piramal and Vodafone need to take care of for this transaction?

Hero Honda de-merger

Hero and Honda Group have tied to do business in India in the year 1984. After 27years in 2010 joint venture between BM Munjal-owned Hero Group and Japanese origin Honda Group has come to end. One of the successful association and continued to be a market leader in Two wheelers in India both companies has decided to split up. How this will impact investors? What were the main reasons for the demerger between Hero Group and Honda Motor Company and what does it mean to the shareholders of Hero Group? Will this deal benefit Munjals more than the shareholders? What are the challenges Hero Group would likely face because of the split? What impact does this have on Hero Group's market share and how does it face its competitors in the new environment? How does it make itself a strong global brand and what are the challenges it could face in the process? What are future prospects for Honda group?

Topics for Case Study

AT & T and T-mobile merger

The latest buzz in the mobile industry is about the AT&Ts astounding $39 billion takeover deal for T-Mobile USA. AT&T is at present the second largest mobile network operator in the US and T-Mobile is only the fourth largest. It is believed that this deal will help the company extend its next-generation data network across the country, helping to meet the growing need for wireless broadband services.

Will this merger be successful? What due diligence should both companies follow to complete this transaction? Are there any Anti-Trust challenges for this transaction? What was the main rationale for AT&T behind this takeover? In Washington State, where T-Mobile's corporate headquarters employs around 3,000, lawmakers and employees are worried about job cuts. Some estimate a merger could mean lays off for up to 30,000 of T-Mobile's 38,000 U.S. employees. How would both companies react to such challenges? How will it impact T-mobile customers? Would they still be with T-mobile?

Contact us

For any queries please contact: Yojit Grover - +91 981 802 0850 Ankit Jain - +91 882 689 0823 Karan Razdan - +91 783 859 0280

You can also mail us at finniche.imt@gmail.com