ASSIGNMENT CORRECTION / CORRECTION DU DEVOIR D0111

ANGLAIS DES AFFAIRES – CORRIGÉ DU DEVOIR D0111
ASSIGNMENT CORRECTION /
CORRECTION DU DEVOIR D0111
A.
Right or wrong. Use the text to justify your answers. Do not explain
1.
Arcelor intends to accept Mittal’s proposal.
Answer: wrong, “Arcelor would continue to reject the overtures by the Indian billionaire.”
2.
Arcelor and Mittal would together be four times as important as their closest
rival.
Answer: wrong, “a combination would create by far the world’s biggest steelmaker, with an
output three times higher than its closest rival.”
3.
All shareholders will be offered voting rights.
Answer: right, “Mr Mittal (…) is offering all shareholders the same voting rights”
4.
Mittal will go on being the chairman as well as the chief executive.
Answer: wrong, “he could agree to split the roles of chairman and chief executive-roles.”
5.
Mittal thinks his proposals are too interesting to be rejected by Arcelor.
Answer: right, “the new offer, which Mr Mittal said was ‘compelling’”.
6.
Mittal believes Arcelor shareholders should take part in the debate and
persuades Arcelor that the deal offered is a good one.
Answer: right, “Mr Mittal said: ‘it is time for Arcelor shareholders to stand up and tell Arcelor
this is a deal that is sensible’”.
7.
However Mittal refuses to raise the bid that it was prepared to pay at the
beginning.
Answer: wrong, “Mittal Steel is raising its bid from €18.6 bn (…) to a new sum of €25.8 bn.”
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ANGLAIS DES AFFAIRES – CORRIGÉ DU DEVOIR D0111
8.
Mittal shares and Arcelor’s shares have the same value.
Answer: wrong, “Arcelor shares closed up 9.9 per cent at €35.17, while Mittal closed down 7
per cent at €25.41.”
9.
The merger between Mittal and Arcelor will be a success whatever the
difficulties of the negotiations.
Answer: right, “Mr Mittal knows that a proposed merger between two such large and complex
businesses is more likely to succeed if the atmosphere between them is cordial.”
B.
Answer the questions
1.
What did Mittal aim at doing by raising its bid?
Answer: He aims at making Arcelor accept the merger by making an offer that could hardly
be refused.
2.
What would a combination of both companies create?
Answer: A combination of both companies would create a very powerful steelmaker far
ahead from its closest rivals.
3.
How far is Mr. Mittal ready to go to acquire Arcelor?
Answer: Mr Mittal is ready to make many concessions to acquire Arcelor and in particular as
far as governance is concerned.
4.
All through the text, the journalist is making a list of all the concessions
Mr. Mittal is ready to make. What are they?
Answer: Mr Mittal is ready to bring down his shares to 45.3% within a new combined
Arcelor/Mittal company, to offer all shareholders equal voting rights regardless the length of
time they have held shares.
5.
What’s arcelor’s answer expected to be?
Answer: Arcelor is supposed to be enticed by the new proposal.
6.
How does Mittal consider his bid?
Answer: Mr Mittal considers his new offer as a “compelling” one, that is to say that Arcelor
has no other choice but to accept it.
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ANGLAIS DES AFFAIRES – CORRIGÉ DU DEVOIR D0111
7.
What is Mr. Mittal offering to pay?
Answer: Mittal is offering to pay €25.8 billion, that is to say one Mittal share for each Arcelor
share plus €11.10.
8.
How do shareholders react?
Answer: Shareholders were quite happy about the proposal.
9.
Why is Mr. Mittal ready to agree to so many compromises?
He is ready to make so many compromises because he seems to reckon that the merger
between the two companies would be a great asset for both.
C.
Translate
Hier, Lakshmi Mittal a relevé son offre hostile pour l’acquisition d’Arcelor de plus d‘un quart,
à 22,7 milliards d’euros (30 milliards de dollars) souhaitant laisser les espoirs
d’indépendance de la compagnie luxembourgeoise sur le tapis.
Cependant, des indications croissantes montraient la nuit dernière qu’Arcelor continuerait à
rejeter les propositions du milliardaire indien, ce qui mènerait à une autre phase
d’affrontements dans la guerre d’usure que se livrent les deux compagnies depuis quatre
mois. Si un accord est trouvé, une alliance créerait de loin l’aciériste le plus important du
monde, avec un rendement trois fois plus élevé que celui de son plus proche rival.
D.
Elaborate upon the following statement
“A combination would create by far the world’s biggest steelmaker, with an output three
times higher than its closest rival.”
INTRODUCTION
1.
General scope sentence
2.
“A combination would … closest rival.” Clarify this sentence and extract
two poles:
 pros and cons of a combination between the two;
 competition on the steelmaking market.
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ANGLAIS DES AFFAIRES – CORRIGÉ DU DEVOIR D0111
3.
Argumentation
ARGUMENTATION
I.
Pros and cons of a combination between the two
II.
Competition on the steelmaking market
CONCLUSION
1.
One small sentence to give the conclusion you have drawn
2.
Go one step further and try to broaden the subject
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