Presented By

Concept: Rahul Munjal Design: Shreshtha

DEAL 1

Telenor is 153 year organisation, a pioneer in Norwegian telecommunication with a 159 million customer base.

Unitech Telecom was founded in 2007 by Unitech Group, the second largest real estate group of India.

Products:
Mobile, Fixed line, Broadcast, Other support business

Features:
Greenfield mobile operator with a pan Indian UAS licence. Team of 250 employees in place Key executives with significant telecom operating experience. India

Features:
Almost a monopoly in Norway Mobile & Fixed line telecom market.

Areas of operation:
Majorly Norway, Sweden and Denmark. Market Cap: USD10.2bn

Areas of operation: Recent Happenings:

Unitech Group facing problems because of the slowing Real Estate sector

Recent Happenings:
Third Quarter results were out which shows a stronger EBIDTA margin and reduced revenue growth. France Telecom wanted to buy Telenor in April08

Why this deal should take place?

Unitech Wireless has pan-Indian telecommunication licences in all 22 telecom circles with no experience in this business while Telenor is one of the leading emerging market mobile player

Deal
Transaction
Telenor acquired 60% stake in Unitech wireless for USD 1.07 bn. Initial Equity injection will be made by Telenor Asia Pte. Ltd. worth USD 250mn. While the rest USD 820mn in three additional tranches by end of Sep 2009 Telenor gets the management control from Day1, and will occupy 4 out of 7 seats on Board of Directors. The investment will be either funded by issuance of short term commercial paper or the rights issue. The Norwegian Government has stated its willingness to participate in the rights issue. At the end of third Quarter, Telenor has a cash and marketable securities worth USD 1.23bn Unique opportunity for Telenor to access worlds second largest mobile market and the fastest growing telecom market in the world. Unitechs strong presence as a trusted corporation in the Indian market with Telenors proven Greenfield expertise in Asia can result into a successful combination. It also aligns with Telenors expansion strategy of entering emerging markets. With a forward looking telecom regulation and an investment friendly climate in India, this deal can provide solid contribution to Telenors growth and long term industrial development. Services are expected to be launched by mid 2009. Instant access to 30,000 -50,000 existing sites through tower sharing

Funding

Outcome

Fig: - Telenors expansion Phases Rahul Munjal

DEAL 2

About Porsche:
Porsche Automobile Holding SE is responsible for the stock of the operating subsidiary, Dr. Ing. h.c. F. Porsche AG, and for the investments in Volkswagen AG Sports cars Luxury cars SUVs Mountain and hybrid bikes Related services like Consulting, Engineering, Financial services and IT Consultancy

Products:
Low-consumption small cars Luxury class vehicles Pickups Busses Heavy trucks

Products:

Features:
Group consists of eight brands: Volkswagen, Audi, Bentley, Bugatti, Lamborghini, SEAT, Skoda and Volkswagen Commercial Vehicles Largest car producer in Europe Has 9.7 percent share of the world passenger car market Has presented new models with all manner of fuelsaving devices and promises low-emission hybrid power units in the future Areas of operation: 44 manufacturing facilities in 12 countries in Europe and in a further six countries in America, Asia and Africa

Features:
Claims to have the highest profit per unit sold of any car company in the world Most prestigious automobile brand Areas of operation: Sells through 34 dealerships in 23 countries spread across North America, Latin America, Europe, Middle East, Africa, Asia & Australia

Recent Happenings:
Having nearly a 75% stake in Volkswagen, 31.5% through cash-settled options and an additional 42.6% it currently owns, Porsche declared its goal to raise this to a dominating stake of 75 % in 2009

Recent Happenings:
Volkswagen said that it expected the move and continues to welcome Porsche's investment

Why this deal should take place?

VW, as a company with sagging profits, is a cheap buy, while Porsche, as the world's most profitable carmaker, has no difficulty securing the financing for the takeover.

DEAL
Events
Porsche had been building up its stake to gain control over Volkswagen, thereby driving up the price. Hedge funds, figuring the VW share price would fall as soon as Porsche got control and stopped buying, sold a lot of VW shares short. Porsche reveals that it owned 74.1% and wanted to go to 75 percent in order to pass a domination and profit transfer agreement that would grant it full control of VW's cash flows The German federal state of Lower Saxony, where VW is based, holds a blocking minority right through just over 20 % stake in VW Investors who shorted the borrowed VW shares had to buy them back. There was just a real free float of less than 6% (74.1% with Porsche & over 20% with state of Lower Saxony) and there were around twice as many short positions This triggered a stampede to close short positions because of which Volkswagen shares gained 100% the next Monday and 90% on Tuesday making Volkswagen briefly the most valuable company beating Exxon Mobil German securities watchdog BaFin announced a formal investigation into Porsche's dealings for signs of insider trading and market manipulation. Porsche said it had done nothing wrong. Porsche said it would be selling up to 5 percent of its options for common shares in the automaker Porsche made a big profit of 6.83 billion euros on options in Volkswagen shares. Porsche and the European Union have sought to overturn that law (the VW law), which effectively protects Volkswagen from being taken over Investors were not as pleased with Porsche, however, pushing its shares 7.6 percent lower on Monday to 42.53 euros ($52.99). The deal might create a strong automobile alliance, which will be able to measure up to the increased international competition. There are also useful cost savings to be achieved

Output

Other Issues

Outcome

Shreshtha