1. ¹Norwegian School of Economics and Business Administration, Bergen, Norway
2. ²Telenor, Norway

Correspondence: CB Meyer, Norwegian School of Economics and Business Administration, Breiviksveien 40, 5045 Bergen, Norway. Tel: +47 55 95 95 67; Fax: +47 55 95 94 30; E-mail: christine.meyer@nhh.no

Received 19 November 2004; Revised 2 April 2007; Accepted 2 July 2007; Published online 24 January 2008.

Abstract

The aim of this paper is to explore the problems of incompatible strategies in international mergers. Studying a failed merger between the two state-owned Scandinavian telecom corporations, we examine how the parties' strategies were incompatible. We find that the parties' strategies were incompatible in three distinctive areas, and study how the companies tried to resolve these incompatibilities. Owing to national governance structures established to protect national interests, the parties were unable to resolve these strategic incompatibilities.