Task 6. Say whether the statements are true (t) or false (f) according to the text.

Find the part of the text that gives the correct information.

1. The majority of mergers take place in the USA.

2. Many international mergers are failures.

3. Most attention is concentrated on what to do after the merger is completed.

4. Many mergers are done too quickly.

5. Connecting different computer systems together is not usually a problem.

6. High salaries were given to Chrysler managers as compensation for the merger with Daimler – Benz.

7. Chrysler has won many prizes for its production methods.

8. Engineers have a high status at Daimler – Benz.

Task 7. Understanding expressions

Choose the best explanation for each extract from the text.

1. 'the merger wave is now sweeping over Europe'

a) a lot of American companies are merging with European ones

b) there has been a big increase in the number of mergers involving European companies

2. 'success will depend on the merged companies' ability to create added value'

a) they must try to make sure the share price goes up after the merger

b) they must try to reduce costs and increase revenue in the new merged company

3. 'post-merger integration has become decisive'

a) the way merged companies work together as one company is extremely important

b)it is necessary to take quick decisions after the merger is competed

4. 'the growing importance of intangible assets'

a) some assets are carefully protected and cannot be touched

b) people are the most valuable asset in many companies

Find in the text equivalent expressions:

в основном; в большей степени;

становиться глобальным;

имеет смысл;

насчитывает, составляет;

пренебрегать, не учитывать;

потерпеть неудачу; не сработать;

снизить затраты;

резко увеличить доходы;

решающий фактор;

добиться успеха;

заключать сделки поспешно;

схемы;

глубоко проникать; пронизывать;

проблема была решена;

конфликты на почве культурных различий;

нематериальные активы;

международные слияния;

вознаграждение, оплата труда;

гибкий подход;

меньше общаться;

ошеломляющий успех;

зловещие предзнаменования;

становятся стратегией ради самой идеи;

обернуться против самых слияний;

когда экономика идет на спад.

Speak about the reasons for mergers becoming failures.

Task 8. Read and retell the text about mergers and acquisitions.

Profitable growth constitutes one of the prime objectives of most of the business firms. It can be achieved «internally», either through the process of introducing or developing new products, as well as by expanding the capacity of existing products a firm is engaged in.

Alternatively, growth process can be facilitated «externally», by acquisitions of existing business firms. This acquisition is technically referred to as mergers, acquisitions, amalgamations, takeovers, absorptions, consolidations, etc. Although the legal procedures involved in these terms are different, these terms are often used interchangeably.

It is a finance manager's job to say how large an enterprise should be, how fast it should grow, and how it should grow. If an enterprise grows «internally» it can retain control with itself during expansion and it will be free to choose how to grow. However, internal expansion usually involves a longer implementation period as well as different problems connected with raising the necessary funds. Mergers or acquisitions, in most cases, help to avoid financial problems and expedite the pace of growth, by saving the time otherwise required in building up new facilities from scratch in the case of internal expansion programme.

Mergers are typically classified into horizontal mergers (when two or more corporate firms dealing in similar lines of activity combine together) and vertical mergers, extending to suppliers of raw materials or distributors.

The finance manager's job is to evaluate such merger decisions.