Mergers and acquisitions: cases of Arcelor-Mittal, Vodafone-Mannesman, AOL-Time Warner and BHP Biliton-Rio Tinto

Résumé du document

Arcelor, which has its headquarter in Luxembourg, is an European metallurgist group born from the fusion in 2002 of Aceralia (Spain), Arbed (Luxembourg) and Usinor (France). On 30th September 2005, the shares number were near of € 640 millions whom around 6 % were hold by the Luxembourg's government and 1 % by employees. In 2005, the annual turnover of the group amounts to € 32, 6 billion, for a net profit of € 3,9 billion. The group employed 96 000 peoples in 60 countries whom 30 000 in France. The group is made up of four main fields which are : the flat carbon steel, the long carbon steel, the stainless steel and the “A3S” : Steel Solutions & Services.

Until 2004, it was the first steel producer in the world but the Indian company Mittal Steel got the first place in 2005. Mittal Steel Company NV is a multinational company with Indian capital of Dutch law. Having its headquarter in Rotterdam, it is specialized in the steel production. Lakshmi Mittal is the chairman and Aditya Mittal the financial manager : the company also is listed on the Stock Exchange in New York (New York Stock Exchange) and Amsterdam ( Euronext). Its turnover for 2005 amounts to $ 28,1 billion with a net profit of $ 3,4 billion. Its market capitalization totals $2, 5 billion (15% of the stockholding). They employed 225 000 persons of 49 different nationalities in 14 countries. Mittal stems from the merger of two firms : Ispat International and LNM Holdings NV. The Mittal family owns 88 % of capital and 97 % of right to vote.

A merger between those two companies would let Mittal benefit from the technological knowledge. In case of successful merger, the team Arcelor-Mittal would bring life to a monster worth 100 billion of tons a year. Moreover, it would lead to gigantic scale reductions costs.

Extraits

[...] Two days later, the Arcelor's board of directors rejects the Mittal Steel Company NV's takeover bid. The France and Luxembourg oppose at this unfriendly takeover bid. Can an industrial and European “institution” like Arcelor take under the control of a business man so “pro-globalization” than Lakshmi Mittal without worrying or touching the citizens and French , Luxembourg , Belgian and Spanish politicians ? Attacks and counterattacks sometimes have overwhelmed the technical framework, the Anglo-American media lively to emphasize an opposition between the European of steel aristocracy and the Indian parvenu”. [...]

[...] A communication campaign repackages the company image. AOL-Time Warner Introduction AOL[10], aka America Online, which has its headquarter in New York, has been set up in 1983 as Quantum Computer Services and is become AOL in 1985. It is about an internet services company which lists on the New York Stock Exchange. Currently, the shares number adds up to 448 349[11] for a market capitalization of $ The firm is established in United States and in Europe (notably through subsidiaries in France, Great-Britain and Germany). [...]

[...] Its market capitalization totals $ billion of the stockholding). They employed persons of 49 different nationalities in 14 countries. Mittal stems from the merger of two firms : Ispat International and LNM Holdings NV. The Mittal family owns of capital and of right to vote. A merger between those two companies would let Mittal benefit from the technological knowledge. In case of successful merger, the team Arcelor- Mittal would bring life to a monster worth 100 billion of tons a year. [...]

[...] They consider it destined for failure due to the reticence of economical and politic world in Germany. They also will have to convince the German labor unions. Lastly, the chancellor Gerhard Schröder has declared during an interview in to object to methodes employées” by the British. The acquisition has given rise to a private deal between the two managements. Joachim Funk[7], Klaus Esser and Josef Ackermann have been accused to have received considerable amounts of money. Another point has been that the Mannesmann's name has been changed after the deal by Arcor . [...]

[...] This transaction was evaluated at billion. But the notification of the engagement causes the disapproval of stockholders and Severstal revises its offer downwards with an acquisition of an interest reduced at The stockholders always displeased decide to sue Arcelor, forcing the management to re-examine its position and to engage discussion with Mittal. Finally, on 25th June 2006 the Mittal's group reaches an agreement in increasing its takeover bid of in comparison to the 25,8 billion offered previously and in granting to hold only of the new group. [...]