Mergers, Takeovers and Sell-Offs
2
Mergers, takeovers and sell-offs a stake an interest l in a company a holding l stake a majority interest holding the shares that one investor has in a company when more than 50 per cent of the shares of a company are owned by one investor, giving them control over how it is run 1 stake 1 when an investor owns less than 50 per cent a minority interest of the shares of a company holding Two companies may work together in a particular area by forming an alliance or joint venture; they may remain separate companies, or form a new company in which they both have a stake. Mergers and takeovers 8 - - _----_ /- -- -- - General Oil and PP have announced 1 1 they are going to merge. It will be the \ \ biggest ever merger in the oil industry. ----V -W---- -"CC-----%- I' Blighty Telecom is to split into two, and demerge its fixed-line and mobile businesses as part of on-going restructuring. The aim of the demerger is to cut debt by £1 0 billion. Ciments de France, the French building group, is to acquire Red Square Industries of the UK for 3.1 bllhon euros.Th~s is a friendly bid, as RSI are likely to welcome ~tand agree to it. But the takeover comes only a year after RSI rejected a hostile bid, an unwanted one. Abbot Bank is doing badly, and may become the victim of a predator.There were rumours of a possible takeover by Bullion, but it says it won't play the white knight for Abbot by coming to its defence.This leaves Abbot exposed t o acquisition, and it may be prey t o a big international bank. Abbot does have a poison pill however, in the form of a special class of shares that will be very expensive for a predator t o buy. W Cotton makes a series of acquisitions of retail and non-retail businesses. and becomes the parent company in a conglomerate or combine with the other businesses as its subsidiaries. Low-price general retail Cotton Stores acquires Bestco supermarkets and diversifies into food retailing. 76 Business Vocabulary in Use Shareholders complain that Cotton Group is unfocused. They demand that its CEO should dispose of non-retail companies, which they describe as non-core assets, and reinvest the money in its main, core activity: retailing. They say that this divestment and restructuring is necessary for future growth and profitability.
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Transcript of Mergers, Takeovers and Sell-Offs
Mergers, takeovers and sell-offs
a stake an interest l in a company a holding
l stake
a majority interest holding
the shares that one investor has in a company
when more than 50 per cent of the shares of a company are owned by one investor, giving them control over how it is run
1 stake 1 when an investor owns less than 50 per cent a minority interest of the shares of a company
holding
Two companies may work together in a particular area by forming an alliance or joint venture; they may remain separate companies, or form a new company in which they both have a stake.
Mergers and takeovers 8 -
- _----_ /- -- -- - General Oil and PP have announced 1
1 they are going to merge. It will be the \ \ biggest ever merger in the oil industry.
----V -W---- -"CC-----%- I'
Blighty Telecom is to split into two, and demerge its fixed-line and mobile businesses as part of on-going restructuring. The aim of the demerger i s to cut debt by £1 0 billion.
Ciments de France, the French building group, is to acquire Red Square Industries of the UK for 3.1 bllhon euros.Th~s i s a friendly bid, as RSI are likely to welcome ~t and agree to it. But the takeover comes only a year after RSI rejected a hostile bid, an unwanted one.
Abbot Bank is doing badly, and may become the victim of a predator.There were rumours of a possible takeover by Bullion, but it says it won't play the wh i te kn ight for Abbot by coming t o its defence.This leaves Abbot exposed t o acquisition, and it may be prey t o a big international bank. Abbot does have a poison pill however, in the form of a special class of shares that will be very expensive for a predator t o buy.
W Cotton makes a series of acquisitions of retail and non-retail businesses. and becomes the parent company in a conglomerate or combine with the other businesses as its subsidiaries.
Low-price general retail Cotton Stores acquires Bestco supermarkets and diversifies into food retailing.
76 Business Vocabulary in Use
Shareholders complain that Cotton Group is unfocused. They demand that its CEO should dispose of non-retail companies, which they describe as non-core assets, and reinvest the money in its main, core activity: retailing. They say that this divestment and restructuring is necessary for future growth and profitability.
34.1 Match the sentence beginnings (1-5) with the correct endings (a-e). The sentences all contain expressions from A and B opposite.
1 The Canadian government decided to sell 45 per cent 2 UK Gold is a successful satellite channel 3 Russia's second biggest airline is trying to buy a stake 4 China signed an agreement to develop a regional jet, setting up a joint 5 Mr Sugar's majority holding in Amstrad
a made him the UK's 15th richest person. b of the state airline to the public, and keep a 55 per cent majority stake. c in which the BBC has a minority interest. d in its US counterpart so they can work out a marketing alliance. e venture company in which it will have a 46 per cent stake, Airbus 39 per cent,
and Singapore Technologies 15 per cent.
34.2 Which expressions in B do the underlined words in these headlines refer to?
' ABC INVITES 4 EAGLES SWOOP ON SHARKS
APPROACHES The financially troubled Sheffield Sharks Basketball cl ABC company has in effect put itself up for sale ...
2 GLOBAL STORES
IS HARD TO DO ON THE LOOK-OUT Following its acquisition of seven retailers in Europe in the last five
years, GS is on the hunt for ...
CLYDE REJECTS 'INADEOUATE' 6
OFFER BY GULF CANADA REED ELSEVIER IN E20 BILLION
Clyde Petroleum's board yesterday aske LINK-UP WITH WOLTERS KLUWER Reed UK is set to become part of an
shareholders to reject what it called a international group with headquarters in ... 'wholly inadequate' offer the Netherlands ...
34.3 Use expressions from C opposite to complete what this journalist says about conglomerates.
A company that has (1) d ................... may decide to limit its activities by selling those (2)
s ................... that do not fit in with its overall strategy. The board of the ( 3 ) p ................... c ...................
may talk about (4) d ................... and ( 5 ) r .................... and getting out of particular businesses.
In this case, the group (6) d ................... o ................... its (7) n ................... - c ................... a ................... and
uses the money to invest in and concentrate on its (8) c ................... activities.
Business Vocabulary in Use 7 7
