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Des acqusitions d`enterprises et des problémes liés au fusionnement des comtes annuels - ètude du cas Telia Mobile
2005 (French)Independent thesis Basic level (degree of Bachelor)Student thesis
Abstract [en]

In this research paper we write about Telia Soneras’s acquirement of Orange Denmark. When making this company acquisition there are many things that Telia needs to consider. Many problems appear when uniting Telia Mobile and Orange and their closures. Our purpose is to describe the different stages that Telia has to go through during this acquisition, the motives and also the problems that comes with the acquisition and when putting the two closures together. To receive information about the acquisition we conducted an interview with the President of Telia Sonera Norway, Denmark and the Baltic countries, and also with the Financial Director at Telia Mobile Denmark. Based on the information from the Financial Director, who experienced similar cases of acquisitions earlier, and on literature we formed the analysis. We analyse Telia’s case but we believe that their experiences and problems are relatively general and therefore it is possible to use our study to gain insight in processes and problems of other company acquisitions. When acquiring another company a so-called due diligence analysis should be made, which means that a deep examination is made of the target company. Telia mobile made a tax and legal due diligence analysis before acquiring Orange. In their case these due diligence analysis’s are especially important because of the acquired 3G licence and because of the depreciation of one of the networks. When depreciating, the company has the possibility to take advantage of different tax deductions. To make these due diligence analysis’s Telia had a week to examine Orange’s documents. One of the major problems when making the accounting after the purchase is that to unite the two companies Telia Mobile has to buy Orange’s assets one more time, which means that they will have to pay to themselves. This is because it is Telia Sonera Denmark that bought Orange Denmark but Orange has to be put together with Telia Mobile. This transfer is made through a loan and no cash is involved. After about five years the loan will be depreciated and the reason for this is that they want to benefit from tax advantages. Another problem is to find the new opening balance. The problem is here that Telia Mobile and Orange uses different calendar accounting year. Telia Mobile used the 11th of October as closing date and Orange used the 1st of July. The result is that they will have to use activities from the 11th of October in the local accounting and the 1st of July until the last of December in the group consolidation. A problem when trying to find the new opening balance is also that assets are depreciated different in different countries. Telia also has to consider the different existing accounting principles in different countries when making the new accounting. Finally we can conclude that it is very important that the person that unite the two closures have experience from similar cases. There is barely any literature, if any, about combining two closures and the only guidelines available are the ones from the auditing firms. This is why our presentation of the Telia case is a good example of what kind of problems that appears when making a company acquisition.

Place, publisher, year, edition, pages
2005. , 46 p.
Identifiers
URN: urn:nbn:se:kau:diva-51546Local ID: FEK C-124OAI: oai:DiVA.org:kau-51546DiVA: diva2:1100039
Subject / course
Business Administration
Available from: 2017-05-29 Created: 2017-05-29

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CiteExportLink to record
Permanent link

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Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf