Unit 4 merger reveals details of mittal empire

1. Pronounce the following words and word combinations. Use a dictionary if necessary.

Capitalisation, authorities, empire, to shield, challenge, consultant, venture, guide, tonne, depreciation, amortisation, league, disclosure, ratio, inappropriate, fraction, comparable, suspicion.

2. Give Russian equivalents to the following words and word combinations.

To disclose payments, to merge one’s current steel assets, to be listed, market capitalisation, stock exchange authorities, to shield one’s activity, ebitda, to hold a respectable place in a league table, sole shareholder, to shed light on previous payments, to be available publicly, umbrella name for existing steel activities, low-wage countries, operating costs, to agglomerate interests, to remove suspicion, disadvantageous deal.

3. Read the text again and answer the following questions.

1. What did Lakshmi Mittal do when he was asked to explain the $2bn dividend?

2. How did Mr. Mittal create the world’s biggest steel company?

3. How much per cent will be controlled by Mittal’s family?

4. Why will Mr. Mittal be forced to reveal far more about his steel empire?

5. Why were most of his activities shielded?

6. What Mittal’s company is likely to be the sixth most profitable steel company?

7. What gives LNM Holdings a highly respected place in a league table of large steel companies?

8. What ebitda will likely be returned by LNM Holdings this year?

9. Why do you think Mr. Mittal is unwilling to shed the light on his previous dividends?

10. What is the umbrella name for all Mr. Mittal’s existing steel activities?

11. Where are most of LNM Holdings’ steel activities? Why?

12. Why did Mr. Mittal and his advisers have to come up with some innovative structures in order to take account of the differing levels of profitability?

13. What were ISG shareholders guaranteed?

14. How were Ispat shares traded?

4. Complete the sentences with the information taken from the text.

1. Mr. Mittal is unwilling to … the … on his previous dividends, which are publicly disclosed.

2. Most of Mittal’s activities were … through being a part of private group.

3. LNM Holdings is likely to be the world’s sixth steel company in terms of earnings before interest, tax, … and amortisation.

4. Mr. Mittal insisted on a so-called … that placed upper and lower limits on the number of shares Ispat would require to issue.

5. In low-wage countries … … are a fraction in Western Europe and the US.

6. Mittal Steel was formed from … all the various steel interests.

7. The terms were designed to … any … among Ispat’s minority shareholders.

8. The ebitda figure of $162 gives LNM Holdings a highly … … in a league table of large steel companies.

5. Explain the following English words and word combinations in your own words.

To be listed, ebitda, merger, to be available publicly, to insist on a so-called collar, disadvantageous deal, to offer a valuation.