Another case of acquisition goes bust - the German handset maker going out of business
Tony Cokewood
Sep. 28, 2006

Another case of acquisition goes bust - the German handset maker going out of business.The Taiwan based company acquired this unit from Siemens about ten months back.

Now they cannot run it any more because the losses are rising fast. 3000 jobs in Germany are getting wiped out.

This is what really happens after take overs and acquisitions. The new owner tries to impart their own business models on the company they acquire and eventually fail collapsing everything.

70% of acquistions go bust in less that three years. And in most other 30% cases, major business philosophy shifts are required. The classical text book example of this is (should be taught in every MBA program) when AT&T with enormous reserves in late 80s took over NCR witj hostile bids. In less than three years they realized they just made a properous company (NCR) hopeless with their own business philosophy. At&T in less that three years sold NCR out for less than half with wich they baught NCR.

Another case of acquisition goes bust - the German handset maker going out of business
Tony Cokewood
The Taiwan based company acquired this unit from Siemens about ten months back.
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