Outcomes of international telecommunications acquisitions: Analysis of four cases with implications for acquisitions theory
Laurence Capron and Will Mitchell summarise cross-border telecommunications acquisition activity in the US and Europe during the past decade and report a detailed survey of four cross-border horizontal acquisitions that occurred in the telecommunications equipment manufacturing sector between 1988 and 1992. They discuss the context, post-acquisition activities, and outcomes of the four acquisitions. The acquisition context includes industry characteristics, target characteristics, target strengths, and acquisition motives. Post-acquisition activities include several dimensions of business restructuring, resource redeployment, and creation of integration mechanisms. Acquisition outcomes include impact on business capabilities, financial performance, and judgments of overall success. They conclude that the results provide much stronger support for strategic reconfiguration and production efficiency explanations for horizontal acquisitions than they do for market power, target mismanagement, or resource appropriation explanations. © 1997 Elsevier Science Ltd.
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