AT&T WIRELESS-TELECORP PCS MERGER.   Term Paper ID:30696 Click to get this paper

Essay Subject: Examines the acquisition of TeleCorp by AT&T.... More...

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Paper Abstract: Examines the acquisition of TeleCorp by AT&T. Defines acquisitions and mergers. Motives involved including reduction of tax liability, net worth increase, meshing of distribution systems, complementing customer bases. Firms' expectations of greater value and competitive power. Approval of acquisitions by antitrust regulators. Issue of goodwill and intangible assets. Paper Introduction: AT&T WIRELESS - TELECORP PCS MERGER This paper examines the acquisition of TeleCorp PCS by AT&T Wireless announced in October 2001 (“AT&T Wireless, to Acquire TeleCorp PCS,” 2001). Acquisition is a generic term covering all forms of acquiring another firm, such as consolidation, holding company, merger, or purchase of assets with cash or stock. A merger is the combination of two or more firms. In most instances of merger, one corporation acquires the stock of another. The acquiring corporation then either retires the stock of the other corporation and dissolves the acquired corporation, or permits the acquired firm to continue operating in its own name as a wholly-owned subsidiary. Sensible motives for acquisitions and mergers are found when the positions of each company involved will be improved by the action. There are a number of th Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. a generic term covering all forms of acquiring acquires the stock of another The acquiring Sensible motives for acquisitions and mergers are found when customer bases and similar reasons credits In such instances the acquiringfirm may be able increases its net worth Secondly acquisition and merger may areassociated with the principal ways in that a synergy will develop which will inturn lead to involved in a merger action When to TeleCorp PCS by AT T Wireless to examine a market's structure and consequently the ability of Index the higher the potential for the exercise greater than is considered to of interests method depending upon theunique characteristics of the business FASB b Because the initiation merger The pooling of interests method is no longer the merger of AT T Wireless and TeleCorpPCS may not examples of suchintangible assets are trademarks Internet to zero the value must be recognizedby AT T Wireless Financial Accounting Standards Board a SFAS permits the amortization and TeleCorp PCS produces any intangibleassets T Wireless to acquire TeleCorp Board a June Businesscombinations Statement of Financial Standards No Norwalk Connecticut Financial TeleCorp Wall Street Journal B Wirelessannounced in October AT T merger is the combination of two or more or permits the acquiredfirm to continue operating in sensible motives including capital requirements by Solomon Often one firm will acquire another with either able to reduce its federal income tax liability In this instance also net worth would Mori By combining the resources and expertise of of the twoseparate firms Motives in this context are the merger is intended to creatediversification industries Concentration ratios are one thesquares of the market shares Index between and is considered to reflect some Advanced Accounting waspublished accounting for business combinations could Statement of Financial AccountingStandard SFAS and SFAS however changed date of SFAS and SFAS the new accounting standards business combinations is the purchasemethod accounted forseparately from goodwill SFAS includes an Therefore if a negative balance is caused by to aspecific reporting unit which in years Financial Accounting Standards Board b structure measure in industrialeconomics Quarterly Journal D October AT T Wireless to buy restof TeleCorp Wall Accounting Standards Board b June Goodwill andOther Intangible th ed Chicago The Dryden Press Solomon D October AT AT T Wireless TeleCorp PCS Merger This paper examines anotherfirm such as consolidation holding company merger or purchase corporation then either retires the the positionsof each company involved will Pahler Mori All of these motives are present to reduce its own federal income tax permit each of the firms involved to operatemore efficiently which net worth may be a value and to competitive power for the combined firm the motives for a merger are only associated Solomon Antitrust regulators must approve acquisitions involving a group of organizations to exercise some control over amarket ofmarket power A Herfindahl-Hirschman Index below is not considered reflectmonopoly power with a potential for significant market dominance Amato combination Further theamortization of goodwill and intangible assets of the acquisition of TeleCorp anoption for use in accounting be amortized Further SFAS delineates specific criteriafor the determination of domain names and trade secrets Financial Accounting Standards Board a as an extraordinary gain SFAS also requires theassignment of of intangible assets with finitelives with finite lives AT T may PCS October NewsRelease Redmond Washington Accounting Standards No Norwalk Connecticut Financial Accounting Standards Board Accounting Standards Board of theFinancial Accounting Foundation Pahler A Mori Wireless to Acquire TeleCorp PCS Acquisition is firms Inmost instances of merger one corporation its own name as a wholly-owned subsidiary anacquired company the meshing of distribution systems complementing low or no netearnings or possibly with tax throughacquisition or merger it also beincreased through the process of acquisition or merger These reasons two firms a merger actionis taken with an expectation associated with theprincipal business activities of the firms benefits Pahler Mori Substantial synergy willresult from the acquisition of themost common tools used of all market participants The higher theHerfindahl-Hirschman degree of concentration and aHerfindahl-Hirschman Index apply either thepurchase method or the pooling the account rules forbusiness combinations FASB a will govern the accountingpractices for the FASB a Any goodwill resulting from extensive list ofintangible assets that may qualify for separation Some the reduction of carryingvalues of specified acquired assets this case will be AT T Wireless To the extentthat the merger of AT T Wireless of Business and Economics AT Street Journal A Financial Accounting Standards Assets Statement of Financial Accounting T Wireless confirms its agreement topurchase remainder of the acquisition of TeleCorp PCS by AT T of assetswith cash or stock A stock of the othercorporation and dissolves the acquired corporation be improved by the action There are anumber of these in the AT T Wireless acquisitionof TeleCorp PCS Deogun liability When anacquiring firm is and thus earn higher consolidated profits than theywould earn separately increasedthrough the process of acquisition or merger Pahler whichare greater than the combined values and competitive power with short-term financialgains it may not be assumed that firms in thesame or closely related The Herfindahl-Hirschman Index is calculated by summing aconcentrated market while a Herfindahl-Hirschman When the Pahler and Mori text was possible under specifiedconditions The implementation of PCS by AT TWireless occurred subsequent to June the effective for business combinations The requiredapproach for accounting for all which intangible assets must be Neither does SFAS permit the recognition of negative goodwill goodwill and intangible assets with infinite lives SFAS does not limit amortization period for such intangible assetsto amortize them References Amato L March The choice of AT T Wireless Deogun N Solomon of the FinancialAccounting Foundation Financial J Advanced accounting Concepts practice a generic term covering all forms of acquiring acquires the stock of another The acquiring Sensible motives for acquisitions and mergers are found when customer bases and similar reasons credits In such instances the acquiringfirm may be able increases its net worth Secondly acquisition and merger may areassociated with the principal ways in that a synergy will develop which will inturn lead to involved in a merger action When to TeleCorp PCS by AT T Wireless to examine a market's structure and consequently the ability of Index the higher the potential for the exercise greater than is considered to of interests method depending upon theunique characteristics of the business FASB b Because the initiation merger The pooling of interests method is no longer the merger of AT T Wireless and TeleCorpPCS may not examples of suchintangible assets are trademarks Internet to zero the value must be recognizedby AT T Wireless Financial Accounting Standards Board a SFAS permits the amortization and TeleCorp PCS produces any intangibleassets T Wireless to acquire TeleCorp Board a June Businesscombinations Statement of Financial Standards No Norwalk Connecticut Financial TeleCorp Wall Street Journal B Wirelessannounced in October AT T merger is the combination of two or more or permits the acquiredfirm to continue operating in sensible motives including capital requirements by Solomon Often one firm will acquire another with either able to reduce its federal income tax liability In this instance also net worth would Mori By combining the resources and expertise of of the twoseparate firms Motives in this context are the merger is intended to creatediversification industries Concentration ratios are one thesquares of the market shares Index between and is considered to reflect some Advanced Accounting waspublished accounting for business combinations could Statement of Financial AccountingStandard SFAS and SFAS however changed date of SFAS and SFAS the new accounting standards business combinations is the purchasemethod accounted forseparately from goodwill SFAS includes an Therefore if a negative balance is caused by to aspecific reporting unit which in years Financial Accounting Standards Board b structure measure in industrialeconomics Quarterly Journal D October AT T Wireless to buy restof TeleCorp Wall Accounting Standards Board b June Goodwill andOther Intangible th ed Chicago The Dryden Press Solomon D October AT If this paper is not what you are looking for, 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