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VI. According to the text, are the following statements true or false?

  1. A paper swap without merger will be acceptable to Novoship’s executives.

  2. German Gref continues to oppose a merger which would consolidate the three companies into a single shareholding.

  3. This transfer of shares would cost the government money.

  4. Terekhin sidestepped the question of whether the proposed merger of the two companies will involve a new share emission.

  5. The Novoship minorities will be hurt, as their shares will not be diluted, at least not before the real merger.

  6. Real merger will not happen within the next five years or so.

VII. Paraphrase the sentences using the words from the text instead of the underlined ones.

1) They didn’t come to an agreement during the last sitting of the board, so the agenda stays the same: how to unite the three companies into a single shareholding.

2) The governor of the region claims it’s impossible to set nautical monopoly for the next 5 years.

3) He strengthened his acting director position when he started a new campaign being a guardian for the state.

4) All subsidiaries and offshore branches have been involved into a new worldwide advertising campaign in order to attract new investments.

5) Again they tried to secure the approval of local authorities for the launching into the market a consignment of food supplements.

6) The Novoship representative admits that negotiations will only go on terms of 50%-share, otherwise the transaction will not take place.

7) They surrendered only after the paychecks were transferred to the bank and the results of the voting were announced.

VIII. Find the words in the text referring to the given definitions.

  1. to avoid smth

  2. close connection

  3. the act of deciding how much money smth might be sold for or the amount of money decided on

  4. limited to only one person or group of people

  5. a possibility or likelihood of something happenning

  6. to be, to be real

Listening

Listen to the recording and answer the following questions:

1. What is the circulation of US News and World Report?

2. How many magazines did Zuckerman own before he bought US News and World Report?

3. How was it/were they called?

4. How much is Zuckerman paying for US News and World Report?

5. How much is the price in relation to the 1983 earnings?

6. How many workers of the US News staff will be dollar millionaires if the deal goes through?

Speaking

I. Speak out:

  1. Comment on the following quotation: “You cannot buy a company merely by buying its shares”.

  2. As a member of the Board of Directors of GM explain what are the benefits that the company expects to flow from building strategic alliances with smaller competitors.

  3. What are the possible disadvantages of the following strategic development elements:

    • Joint production of engines and new models saves costs

    • Production economies of scale

    • Managerial economies of scale

    • Technical economies of scale

    • Speedier development times.