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By becoming large international firms, these companies could attract lucrative multinational corporations as clients and achieve significant economies of scale through handset procurement and other synergies.
In January 1999, rumours began to circulate that Vodafone was going to acquire Mannesmann. These rumours were confirmed in October when Vodafone, in preparation to meet German regulatory requirements, exited the German market by selling its 17% stake in E-Plus. In response, Mannesmann reported that it was going to acquire Orange, a UK based wireless service provider. Although Orange did not fit with Mannesmann’s strategy of providing integrated communications, the acquisition still had strategic value...
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