Olivetti - Telecom Italia

Published 01 Jan 2000
Reference 4919
Region Europe
Summary

The European market for corporate control has undergone rapid change. Together with attempted takeover of Thyssen by Krupp and their eventual merger, and the successful hostile takeover of Mannesmann by Vodafone Airtouch, the takeover of Telecom Italia by Olivetti was a path-breaking event in this process. A transaction that would have been unheard-of only a few years before not only was successfully carried out, but the process was carried out and financed in a new financial market characterized by a single currency. This case illustrates the dramatic changes that have been taking place in European financial markets and their implications for corporate governance.

Teaching objectives

Illustrate the changing corporate governance structure in Europe. Understand the strategic and tactical issues involved in hostile takeovers.
Develop the implications of the Euro-zone capital market for corporate restructuring.