Mccaw Cellular Communications: the at&T/Mccaw Merger Negotiation

2453 Words Mar 28th, 2013 10 Pages
SGMT 6050 – Case Write-­‐Up

McCaw Cellular Communications: The AT&T/McCaw Merger Negotiation

Armin Ezatagha Student Number ⏐ 205 576 707 eMail ⏐ aezatagha12@schulich.yorku.ca Schulich School of Business Tuesday, March 05, 2013

Current Telecommunications Ecosystem McCaw Cellular Communications (MCC), although positioned
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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,

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