1. controversy n – противоречие, спор, дискуссия

controversial a – противоречивый, спорный, дискуссионный

2. retool v – переоборудовать, оснащать новой техникой

3. refurbish v – переоборудовать, переоснастить

4.legacy n – наследство, наследие

5. wholly-owned subsidiary – дочернее предприятие, на 100% принадлежащее материнской компании

6. inverse correlation – обратная корреляция

7. in the red – с убытком

8.in the black – без убытков

9. cost base – база затрат

10. market capitalization (cap) – рыночная капитализация

11. loss-making – убыточный

12. reach n – зд. охват

13. holding n – капиталовложение, участие в капитале компании, владение, холдинг

holding a – холдинговый

14. outdated a – устаревший

15. payoff n – доходность, выплата, компенсация; развязка

pay off v – выплачивать, погашать долг, окупаться

16. predator n – хищник

predatory a – хищный, грабительский

17. breakup fee – неустойка, комиссия за прекращение контракта

18. collaboration n – сотрудничество, совместная работа

collaborate v – сотрудничать

collaborative a – на основе сотрудничества, совместный

19. strike n – забастовка; исполнение (опциона)

20. organic growth – органический рост

21. derivative n – созданный на базе чего-то, производный (в т. ч. финансовый инструмент)

derivative a – производный

22. optional a – не обязательный, по выбору

23. assembly plant – сборочный завод

24. premium price – цена с премией

1. What are the prospects and the estimated growth rates of the global car industry? 2. How was the process of consolidation in the car industry developing? 3. What is the relationship between the number of brands a carmaker possesses and its profitability? 4. What are the two biggest recent consolidation deals in the car industry and what were their respective outcomes? 5. Why has the takeover activity ended recently? 6. What are the problems that GM currently faces? 7. Has Volkswagen’s acquisition strategy paid off so far? 8. What is the secret of Toyota’s success? 9. What is the current winning strategy in the car business?

1. a takeover company’s best and most profitable division, which it may sell to discourage the raider

2. a provision in the employment contract of top-level managers that provides for severance pay or other compensation should the manager lose his or her job as the result of a takeover

3. a company «pays off» a potential acquirer to persuade him to leave the company alone. It pays him a premium to buy back the stock he purchased

4. firms or individuals that are employed by a target company to fend off a takeover bid; these include investment bankers, accountants, attorneys, tax specialists, etc. They aid by utilizing various anti-takeover strategies, thereby making the target company economically unattractive and acquisition more costly

5. anti-takeover strategy used by target firms whereby the target firm issues a charter that prevents individuals with more than 10% ownership of convertible securities from converting these securities into voting stock

6. the target company toward which a takeover attempt is directed

7. tactic in corporate finance used to counter a takeover or merger bidder who has made a formal bid to shareholders to buy their shares. When the board of directors of the target company meets to consider the bid, they «just say no».

8. a defense tactic used by the takeover target firm. The company goes after the raider firm and tries to take it over to prevent being taken over.

9. an illegal activity in which an investor or group of investors holds securities in its name until the raider needs them. The raider used this tactic secretly to gain a large enough stake in a firm. This allows him to «sneak up on» the takeover target; the target has little time to plan a defense.

10. a provision set up by the target company that forces the cost of a hostile acquisition to increase dramatically. The aim is to make it too expensive for the raider to acquire the firm.

11. the person or company attempting the takeover of another company

12. provision under which a target company will acquire a troublesome firm in order to raise the acquisition price and make acquisition by other parties economically unattractive

13. when a target firm implements this strategy, it will make an effort to make it unattractive to the hostile bidder. For example, a company may agree to liquidate or destroy all valuable assets, or schedule debt repayment to be due immediately following a hostile takeover

14. anti-takeover corporate charter amendments

15. a raider who sells off some of the assets of the target company once the target is acquired

16. any technique used by a target firm in which takeover protection could result in self-destruction

17. a company that is friendly to the takeover target. It intercedes to offer better terms or a better price

Takeover Terms:

Shark Repellents. Poison Pill. Stripper. White Knight. Crown Jewel. Suicide Pill. Lobster Trap. Golden Parachute. Scorched Earth Defense. Greenmail. Killer Bees. Maiden. Pac Man. Raider. Parking. Safe Harbor. Nancy Reagan Defense.

The term M&A refers to the aspect of……. strategy and management dealing with the merging and acquiring of different companies. Usually mergers occur in a friendly setting where executives from the respective companies participate in a…… process to ensure a successful combination of all parts. Historically, though, mergers have often failed to add significantly to………

Technically, what differentiates a merger from an acquisition is how it is financed:

A «merger» or «merger of equals» is often financed by an all stock deal (a stock…….). An all stock deal occurs when all of the owners of stocks of either company get the same amount of stock in the new combined……. The term…… is sometimes used to indicate the effective opposite of a merger, where one company splits into two.

An acquisition (of un-equals, one large buying one small) can involve a cash and…….. combination, or just cash, or a combination of cash and stock of the…… entity, or just stock. In addition, the acquisition can take the form of a purchase of the stock or other…….. of the target entity, or the acquisition of its assets.

In some cases, a company may acquire another company by issuing…….. debt to raise funds (often referred to as a……). The reason the debt carries a high yield is the……. involved. The owner can not or does not want to risk his own money in the deal, but…….. are willing to finance the deal for a high……. The combined company will be the……..of the high-yield debt and it will be on its balance sheet. This may result in the combined company having a low……… to loan capital ratio.

The following M&A motives are considered to add shareholder value:

………: This refers to the fact that the combined company can often reduce……… departments or operations, lowering the costs of the company relative to theoretically the same revenue stream, thus increasing profit.

Increased revenue/Increased market share: This motive assumes that the company will be absorbing a major competitor and increasing its power (by………. increased market share) to set prices.

……….: For example, a bank buying a stock broker could then sell its banking products to the stock broker’s customers, while the broker can sign up the bank’s customers for brokerage……… Or, a manufacturer can acquire and sell…….. products.

……….: Better use of complementary resources.

Taxes: A profitable company can buy a…….. to use the target’s tax……..

Geographical or other………: This is designed to smooth the earnings results of a company, which over the long term smoothes the stock price of a company, giving………. investors more confidence in investing in the company. However, this does not always……… to shareholders.

The following motives are considered to not add shareholder value:

Diversification: While this may hedge a company against a……… in an individual industry it fails to deliver value, since it is possible for individual shareholders to achieve the same hedge by diversifying their……… at a much lower cost than those associated with a merger.

Overextension: Tend to make the organization fuzzy and………..

Manager’s ambitions: Often the executives of a company will just buy others because doing so is newsworthy and increases the…….. of the company.

………: Managers have larger companies to manage and hence more power.

Manager’s сompensation: In the past, certain executive management teams had their……….based on the total amount of profit of the company, instead of the profit per share, which would give the team a perverse……… to buy companies to increase the total profit while decreasing the profit per share (which hurts the owners of the company, the shareholders).

overlapping, risk, economies of scale, incentive, borrower, portfolios, profile, write-offs, high-yield, cross selling, corporate finance, due diligence, empire building, conservative, shareholder value, swap, entity, «demerger», debt, acquiring, equity interest, leveraged buyout, cost of capital, shareholder’s equity, capturing, accounts, complementary, synergy, loss maker, diversification, deliver value, downturn, unmanageable, remuneration, third parties

«Газпром» заплатит $13 млрд за 72,6% акций «Сибнефти».

Весной 2004 г. «Газпром» впервые объявил, что хочет стать нефтяной компанией. Сначала он собирался поглотить «Роснефть» и «Юганскнефтегаз», который выставлялся на торги за долги «ЮКОСа». Но, когда «Юганск» достался «Роснефти», а та отбилась от слияния, «Газпром» начал договариваться о покупке «Сибнефти».

Вчера ударили по рукам: «Газпром» подписал соглашение с Millhouse Capital по покупке 72,6% «Сибнефти» за $13 млрд, сообщили компании в совместном заявлении. Еще 3% «Сибнефти» монополия выкупила у Газпромбанка, и в ее распоряжении будет более 75% нефтяной компании. Сделка заключена на рыночных условиях, цитирует «Газпром» председателя совета директоров, главу администрации президента Дмитрия Медведева. Вчерашняя цена одной бумаги в РТС – $3,65, днем ранее – $4, а по условиям сделки – $3,8. Капитализация «Сибнефти» в РТС – $17,3 млрд, а стоимость 72,6% – $12,57 млрд. «Всем очевидно, что условия рыночные, а цена справедлива для всех», – говорит Боб Форесман, глава Dresdner Kleinwort Wasserstein в России, которая консультировала «Газпром».

Подробнее ни «Газпром», ни «Сибнефть» не комментируют ситуацию. Два хорошо знакомых с условиями сделки бизнесмена обещают, что закроется она быстро: владельцы получат все деньги до конца октября. Это подтверждает и менеджер «Газпрома». В сделку войдут некоторые активы, не принадлежащие «Сибнефти» напрямую: 50% «Славнефти» и 38,5% в Московском НПЗ. Об этом сообщили два источника, близких к сделке. $13 млрд – это не все доходы продавцов компании. Незадолго до сделки акционеры «Сибнефти» утвердили дивиденды в $2,3 млрд.

Кредитовать «Газпром» на покупку будут банки ABN Amro и Dresdner Bank, Citigroup, Credit Suisse First Boston, Goldman Sachs, Morgan Stanley. Два банкира утверждают, что речь идет о займе до $13 млрд. Часть кредита «Газпром» впоследствии рефинансирует за счет средств, которые в конце года получит от «Роснефтегаза» (166,4 млрд руб.), а также за счет долгосрочных кредитов и еврооблигаций.

Формально «Газпром» не получил разрешения на покупку, а его совет директоров перенес вопрос на следующее заседание. Против сделки прямо высказывался министр экономического развития Герман Греф. Но это уже не имеет значения, уверен источник, близкий к Кремлю. В июле Владимир Путин признался, что знает о переговорах и акционеры «Сибнефти» «должны воспринимать это как рыночную сделку». Тогда его слова трактовали по-разному, говорит собеседник «Ведомостей», но теперь ясно, что это было одобрение.

Покупка «Газпрома» – крупнейшая за всю историю нашей страны. Максимум M&A в России зафиксировал Ernst & Young: в 2004 г. было заключено сделок на $30 млрд с учетом «Юганска». Заодно сделка с «Сибнефтью» попала на 3-е место в списке слияний в мировом энергосекторе, оплаченных деньгами. В 1999 г., по данным Thomson Financial, группа инвесторов купила итальянскую Ente Nazionale per l’Energia за $18,7 млрд, а испанская Repsol заплатила за аргентинскую YPF $17,4 млрд.