analysts, antitrust, competition, consumers, merger
In the current economic climate, mergers and acquisitions offer potential for growth, as well as a means to cut costs by the laying off of staff and sharing of resources. The danger in M&A activity is the domination of markets by monopolies, and this is where antitrust authorities step in to ensure that markets remain competitive and consumers have a choice in products and services. The proposed takeover of T-Mobile by AT&T has been big news recently and it is no secret that AT&T was counting on this acquisition...
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at&t, investors, merger, nyse, t-mobile, verizon
The telecom sector of the US economy is a hive of merger and acquisition activity that investors are no doubt following with intense interest. The latest activity to hit the news is the planned $39 billion merger between AT&T (NYSE: T)and T-Mobile USA. This development threw a spanner in the works for Sprint Nextel's investors who had been anticipating positive results from the recent merger talks between Sprint and the German mobile telecom provider T-Mobile. Should the proposed AT&T/T-Mobile merger meet with the approval of regulatory authorities, the combined company...
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broadband, comcast, merger, microsoft, nbc
Comcast Corporation, the largest home internet service provider and cable operator in the United States, has completed its merger with American television network NBC, in a deal that has raised concerns regarding the level of control the now $30 billion media giant will have over information delivered to the public. Comcast now holds a 51 percent stake in NBC Universal, with General Electric holding a 49 percent stake, putting Comcast in the position of controlling more telecommunications lines and Internet connections than any other service provider in the country....
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continental, main street, merger, monopolies, united airlines, wall street
With any merger between two key players within an economic sector there are bound to be objections from many quarters, as well as concerns regarding competition, or rather lack thereof, and avoiding the creation of a monopoly. The merger of United Airlines and Continental Airlines (the third and fourth largest commercial airlines in the US) is no different, especially when taking into account that the merger will reportedly create the world's largest airline, with estimated revenue of around US$30 billion and carrying in excess of 120 million passengers annually. It...
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automakers, bush administration, chrysler, general motors, merger
Further to Wednesday’s article (see "General Motors Seeks Government Aid For Merger With Chrysler"), a Bush administration official revealed late Thursday that the Treasury is not negotiating with automakers on any bailout deal. No reason was given for the decision, but the general consensus among people in the know, is that the Treasury is unwilling to pump large sums of taxpayers money into assisting a merger which would undoubtedly result in the loss of thousands of taxpayer’s jobs, with some estimating the potential...
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bankruptcy, chrysler, ford, general motors, investors, merger, united states
U.S. vehicle manufacturing giants, General Motors and Chrysler (owned by Cerberus Capital Management), have appealed to the U.S. government for $10 billion to facilitate a merger of the two companies. The proposed package would include the U.S. government buying $3 billion worth of preferred stock in the merged company, meaning that the U.S. taxpayer would have a direct stake in the GM-Chrysler merger. Moreover, the merging companies have asked the government to take over $3 billion in pension liabilities as well as buying GM short-terms notes to strengthen...
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antitrust, competition, consumers, investors, london, merger
The initial rumblings of Virgin Atlantic Airways against the proposed “merger between equals” of British Airways and Iberia Airlines, is growing into a thunderstorm as high profile owner of the airline, Sir Richard Branson, launches a campaign to stop the merger. He has reportedly written to both American presidential candidates, Barack Obama and John McCain to warn them that an affiliation between the two airlines would be anti-competitive.
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british airways, london stock exchange, merger
British Airways and Iberia Airlines have plans to enter into an all-share merger agreement which will form the third-largest carrier group in terms of revenue, while at the same time allowing each brand to maintain its individual identity. Should the merger be successfully concluded, a new holding company will be formed that will acquire both British Airways and Iberia Airlines, with both companies exchanging their shares for shares in the new parent company.
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