Twenty-five Largest Mergers and Acquisitions by Corporations: 2000

Order Code RS20504 Updated February 5, 2001 CRS Report for Congress Received through the CRS Web Twenty-five Largest Mergers and Acquisitions by Corporations: 2000 John Williamson Technical Information Specialist Resources, Science, and Industry Division Summary The rate of corporate mergers and acquisitions both in the United States and internationally increased throughout the 1990s. Many analysts believe that the value of mergers peaked at $3.48 trillion3 in 2000. This report provides a listing of the twentyfive largest mergers or acquisitions for the year 2000.+ Completion dates for the mergers or acquisitions are included. These data have been drawn from publicly available sources and have not been otherwise verified by CRS. This report will be updated as warranted. Twenty-five Largest Mergers or Acquisitions: 2000 (ranked by value) (All amounts cited are U.S. Dollars) Acquirer, Sector, and New Name (if applicable) Target Firm and Sector Date Announced Date Value Completed ($ billions) * The designation “Pending” often indicates that regulatory approval needed for actual merger has not been obtained. GlaxoWellcome Pharmaceuticals GlaxoSmithKline plc AOL Telecommunications AOL TimeWarner Deutsche Telekom Telecommunications General Electric Company Conglomerate Chevron Inc. Oil Smithkline Beecham plc Pharmaceuticals 1/17/00 12/27/00 $189.003 TimeWarner Telecommunications 1/10/00 1/11/01 $181.003 VoiceStream Telecommunications Honeywell Inc. Conglomerate Texaco Inc. Oil 7/12/00 Pending* 51.83 10/22/00 Pending* 45.04 10/13/00 Pending* 43.04 + For the top 25 mergers of 1998, see RS20502, Twenty-five Largest Mergers and Acquisitions by Corporations: 1998; for the top 25 mergers of 1999, see RS20503, Twenty-five Largest Mergers and Acquisitions by Corporations: 1999;for the top 25 mergers of 2000, see RS20504, Twenty-five Largest Mergers and Acquisitions by Corporations: 2000; and for the largest mergers of 2001, see RS20804, Largest Mergers and Acquisitions by Corporations: 2001. Congressional Research Service ˜ The Library of Congress CRS-2 Acquirer, Sector, and New Name (if applicable) Target Firm and Sector Date Announced Date Value Completed ($ billions) * The designation “Pending” often indicates that regulatory approval needed for actual merger has not been obtained. France Telecom S.A. Telecommunications Vivendi S.A. Conglomerate Canal Plus S.A. Entertainment Vivendi Universal S.A. Chase Manhattan Bank Banking & Finance J.P. Morgan, Chase & Co. HypoVereinsbank Banking and finance Sanwa Bank Ltd. Banking and finance United Financial Group British Telecommunications plc Vodafone AirTouch plc Telecommunicaitons Unilever Consumer goods Pacific Century Cyber-works Telecommunications Deutsche Post Postal Service and Logistics Philip Morris Conglomerate JDS Uniphase Fiber optic components VeriSign Telecommunications Pepsico Beverages and foods Granada plc Media, hotels and food service Granada Compass plc JDS Uniphase Corp. Fibre optic supplies Vivendi S.A. Conglomerate FPL Group Energy company Orange plc Telecommunications Joseph Seagram Co. Ltd. Entertainment and alcoholic beverages 5/24/00 8/24/00 36.03 6/14/00 12/8/00 35.03 J.P. Morgan & Co. Banking & Finance 9/12/00 12/31/00 34.44 Bank Austria Banking and finance Tokai Bank Ltd. Toyo Trust Ltd. Banking and finance Airtel S.A. Telecommunications 7/22/00 9/28/00 32.44 3/14/00 30.52 6/12/00 Pending* (projected 4/01) 6/12/00 5/3/00 10/4/00 20.54 2/29/00 8/17/00 19.04 9/13/00 1/02/01 18.924 6/25/00 12/11/00 18.93 7/10/00 Pending* 17.04 3/6/00 6/9/00 15.35 12/4/00 Pending* 15.12 5/15/00 7/28/00 14.44 2/7/00 6/28/00 14.252 6/19/00 12/8/00 14.052 7/31/00 Pending* (projected 10/01) 5/31/00 13.93 Pending* (projected 2/01) 12.54 Bestfoods Consumer goods Hong Kong Telephone Telecommunications DHL Worldwide Express Inc. Delivery company Nabisco Holdings Food stuffs SDL Fiber optic components Network Solutions Inc. Telecommunications Quaker Oats Beverages and foods Compass plc Catering and food service E-Tek Dynamics Inc. Fibre optic supplies Canal Plus S.A. (51% not already owned) Entertainment Entergy Corporation Energy company Cap Gemini SA Ernst & Young Management services Consulting services Cap Gemini Ernst & Young Viacom Inc. Infinity Broadcasting (35.7% Entertainment and broadcasting not already owned by Viacom) Entertainment and broadcasting 2/29/00 8/15/00 23.03 13.24 CRS-3 Acquirer, Sector, and New Name (if applicable) Target Firm and Sector Date Announced Date Value Completed ($ billions) * The designation “Pending” often indicates that regulatory approval needed for actual merger has not been obtained. Union Bank of Switzerland (UBS) Banking and finance PaineWebber Stockbroker 7/12/00 11/3/00 12.04 Note: Values given for transactions are expressed as the value of the combined assets of the two firms when there is a merger. In an acquisition, the value shown is the purchase price of the target corporation. These figures sometimes vary from one source to another and can change as the market value of the company’s stock changes, values are shown in U.S. Dollars. U.S. Dollar value can fluctuate with changes in exchange rates. The values shown above are derived from the following sources: 1 Source for value: Mergers & Acquisitions. 2 Source for value: Mergerstat. 3 Source for value: The Wall Street Journal. 4 Source for value: The Financial Times. 5 Source for value: The Washington Post. Sources: Mergerstat Online (http://www.mergerstat.com); Mergers & Acquisitions Magazine, various issues; The Wall Street Journal, various dates; The Financial Times, various dates; announcement and closing dates from The Wall Street Journal or The Financial Times, various dates.