Divesture/acquisition analysis: PT/Telefónica/VIVO case study

• Autor(a) principal: Santos, Maria Paula Correia Pedroso dos
• Data de Publicação: 2011
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/4324
• topic: Divesture; Joint-venture; Golden-share; Event studies; Winner´s curse; Desinvestimentos; Estudo de Eventos; Maldição do vencedor

The main objective of this master thesis is to evaluate the impact of events/announcements in the market capitalization of companies involved and to test market efficiency. Acquisitions, mergers and divestures are strategies followed by companies in order to adjust to economic and political changes and explore opportunities to develop capabilities in new environments. In this study it is analyzed the impact of selling the stake held in Vivo by PT to Telefónica in the market capitalization of the both companies. Additionally it was applied the event study methodology suggested by Mackinlay et al. (1997). This methodology can be used to measure the impact of a specific event on the market capitalization of companies with the purpose to test market efficiency in capital markets. In this study were detected abnormal returns in every events in analysis, with special focus on event 2 and 3, that correspond respectively, to the day 1st June 2010 (day in which Telefónica launched the second offer in order to acquire Vivo, for the amount of €6.5 bn) and the day 30th June 2010 (day when the General Board Meeting occurred and the Portuguese government used the golden share in order to block the operation).