Restructuring as a Response to a Challenging Environment
A mobile operator begins life within a single country, sometimes as the subsidiary of the fixed-wire incumbent. It is expected to begin the process of internationalisation by acquiring stakes in operators within the same region before branching out into new regions where, it must be said, it will have cultural issues to contend with that may in the course of time prove insuperable. But it cannot really pick and choose. It must acquire either stakes or licences, so its options are to grab whatever is available at the time, wait patiently for the right ones to become available or engage in M & A activity on a friendly or hostile basis. To build up a decent-sized portfolio of international holdings is accordingly a process that takes a long time and is likely to be fraught with setbacks. And at the end of the initial process an internationalising operator will typically find either that there is little or no synergy between its holdings, that it has little or no control over some of its holdings or that some of its holdings are inherently unprofitable. This explains why even the most voracious of acquirers seeks periodically to off-load some of its holdings, which may, for reasons of synergy, prove to be more attractive to another operator.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.