Improvisation in investor and media relations in strategic change in the case of Fortum – Uniper: Maintaining legitimacy through emergent risk communication in M&A context
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School of Business |
Master's thesis
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Authors
Date
2019
Department
Major/Subject
Mcode
Degree programme
Corporate Communication
Language
en
Pages
95 + 4
Series
Abstract
Purpose This case study takes a deep dive into the transformation of the professional communicational landscape during a strategic change of an international listed company. More specifically, the focus is on the risk communication practices of the case company, a Finnish utility company Fortum, in its legitimizing efforts to successfully acquire a major stake in a German utility company Uniper after the takeover attempt is strongly questioned in the public, stirring uncertainty and causing diverse subjective perceptions of risk to emerge among the stakeholder groups. The study investigates how the key actors engage in improvised risk communication activities in an effort to advocate the legitimacy of the takeover attempt, and how issues concerning legitimacy are (re)framed among different stakeholder groups by competing actors. Design and methodology The study offers a critical discourse analysis of a merger process of two international utility companies headquartered within the European Union. The qualitative empirical material is composed of the communications materials and media texts of the two companies and chosen few miscellaneous texts. Findings This research further elaborates the dynamics of legitimacy-building through means of risk communication in a merger of two international public companies, when the acquiree openly considers the takeover hostile. It demonstrates how the ability to improvise in risk communication in consideration of the organization’s strategy, social context and contesting frames is an increasingly essential trait to legitimize such dramatic actions characterized by uncertainty and risks. Originality and value The study complements existing communication management literature, presenting risk communication more clearly as a branch under the umbrella of strategic communication, and an essential aspect of strategic management of an organization. In more general terms, this case study qualifies as an in-depth empirical critical analysis of a multifaceted merger process as part of the ongoing industry transformation and consolidation of the European power generation field towards a cleaner world.Description
Thesis advisor
Kuronen, Marja-LiisaMoisander, Johanna
Pälli, Pekka
Keywords
strategic communication, risk communication, investor relations, media relations, discursive analysis, legitimation, mergers & acquisitions, framing