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Tuesday, December 27, 2005

synergies in M&As - landline and mobile disconnect

india inc is on a mergers and acquisitions spree. overseas cos are being bought like a kid buying candy. great explanation about the synergies are being given and 1+ 1 = 4 !!
but i think the benefits of the mergers may be far less than being portrayed.

take the case of airtel, the merged the landline and mobile operations after the universal licensing regime came into place. but walk into to an airtel showroom, and they are likely to carry on only one activity - landline or mobile --- not both. - which is pretty annoying from a customer perspective

if bharati, one of most admired company in india cant pull of an internal merger from a customer perspective - i wonder what the other cos. buying overseas assets can do.

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