Mccaw Cellular Communications the atT/Mccaw Merger...

SGMT 6050 – Case Write- ­Ã¢â‚¬ Up McCaw Cellular Communications: The ATT/McCaw Merger Negotiation Armin Ezatagha Student Number ⠏ Ã¯ £ ¦ 205 576 707 eMail ⠏ Ã¯ £ ¦ aezatagha12@schulich.yorku.ca Schulich School of Business Tuesday, March 05, 2013 Current Telecommunications Ecosystem McCaw Cellular Communications (MCC), although positioned†¦show more content†¦Precedent Transaction Analysis When comparing the potential MCC acquisition to precedent transactions of similar firms by size and by transaction date, we found a valuation of approximately $11.5 Billion (Appendix 2). The precedent transaction analysis can tell us how to deal with a negotiation based on historical transactions already completed. However, it is important that we understand the limitations of this method as every situation in which a merger or acquisition deal is made; there are multiple dependant variables at play with different strengths of correlation. As for this case, we decided to address the companies that were 2 most similar in size to MCC and that were most recent since the industry is rapidly evolving, and therefore, valuations are also rapidly changing. Discounted Cash Flow Analysis Finally,Show MoreRelatedMccaw Cellular Communications: the atT/Mccaw Merger Negotiation2593 Words   |  11 PagesATT and McCaw merger negotiation, provides us with an opportunity to negotiate the terms of the merger between McCaw cellular and ATT. McCaw was the largest competitor in the rapidly growing cellular telephone communications industry. ATT was the dominant competitor in long-distance telephone communications in the United States, and one of the largest corporations. Prior to the negotiations, it had no position in cellular communications. Brief Insight: McCaw Cellular Communications McCaw CellularRead MoreATT/McCaw Merger Negotiation.1250 Words   |  5 Pages1. What do you believe McCaw is worth? 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