Tata communication (TCL) was trying to obtain its one of the key aim to turn into a globally connected network provider in 2004. The two alternatives that Tata had was either to build or to acquire. In case of building, TCL would have the only right to set its particular terms according to her need. While the option of acquisition of the Tyco Global Network (TGN) would expedite TCL to connect globally rapidly.
As one of the biggest worldwide network at the time of the case, the TGN was a limited resource. TCL would might become one of the key player in worldwide internet connectivity if it acquires the TGN. Although, it was not a huge amount to pay for this acquisition, but the risk and liabilities associated with TGN would significantly increase this cost for TCL.
Tata Communications' Acquisition of Tyco Global Network (A) case study solution
Should TCL have negotiations with Tyco for these risks? If yes, what would be the possible ways to proceed with? How to reduce the consequences of existing risks and uncertainties? If not, what would be the harmful impact of losing the opportunity of acquiring TGN, especially if a competitor avail this opportunity?
Srinivasa Addepalli is affiliated with Indian Institute of Management, Ahmedabad and Andrew Karl Delios is affiliated with National University of Singapore.................................
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