Oct 20, 2009 09:27 AM
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(Updated Oct 20, 2009 09:30 AM)
Writing Style
*This book provides a detailed insider account of the unsolicited/hostile takeover bid of Arcelor by Mittal Steel. Though this book in not written by an insider to the whole takeover transaction, the authors claim to have extensively interviewed most of the insiders. As one reads the books, one realizes that the amount of research that has gone into the book and the kind of details that have been described – it is not possible to write such things unless either one is letting the imagination run wild or one has great assistance from people(s) who were on the inside.
The language used in the book is easy to understand. For any person who has basic theoretical understanding of Mergers and Acquisitions(M&As) and terms like White Knight, While Squire, Poison Pill etc. would be able to thoroughly enjoy the book. For any person who has no understanding of these things need not worry because as you would read the understanding would be clear and there would be no need to refer to any special sources to understand technical things or M&As.
Contents
The book starts with Mittal Steel’s successful bidding for Ukrainian steel company Kryvorizstal in 2004. Arcelor and Mittal Steel both were in the race and Mittal won the bid. Initial chapters of the book make clear the race between Mittal Steel and Arcelor – how intense and important the race is for all the people. The egos of Arcelor CEO Guy Dolle and Mittal Steel’s Lakhsmi Mittal, their aspirations and how seriously both of these commanders are taking the battle are made clear in the starting of the book.
After setting the clear the basic things, the book takes us back to June of 1950 to a place called Sadulpur in Rajasthan in India. From there the authors describe the history of Lakshmi Mittal – going to school, moving to Calcutta, going to college, getting into family business, getting married, moving to East Java in 1975, building a steel plant from the scratch. At the age of 39, Mittal knew that he did not have enough time in front of him to build many more plants from scratch. From here started the growth formula Mittal has perfected over the years – acquiring loss making steel manufacturing entities and turning them around completely. The authors then start describing the tussle between Arcelor and Mittal Steel – how a special secret team was created by Guy Dolle to envision circumstances where they might be under attack from Mittal and plan out defences in advance One of the plans was to acquire a steel company in USA, which was infact acquired by Arcelor, but that could not save it from coming under and attack.
The authors have described in detail the strategy and the well oiled operation put in motion by Mittal. How the whole strategy was made, the amount of planning and discussion that went into the takeover strategy, the scores of issues that were identified by the team of investment bankers and lawyers, and how those obstacles were over come. Also explained in great detail are the various defence strategies used by Arcelor. How they tried desperately to find out a White Knight and in the end indeed found one in SeverStal of Russia(and then how Mittal outsmarted the Russians), the various poison pills, a special protectionist takeover law put on table by Luxembourg govt. but which was never passed, the political charm offensive of Lakshmi Mittal and how in the end every single defence strategy that was put in place by Arcelor failed and the only option they were left with was the While Knight in SeveStal.
Conclusion
Mittal’s vision, one he kept on repeating throughout the battle for Arcelor was that state run steel companies had no place in the modern world. Steel would have to go global. According to the authors the reason Mittal was so successful in turning around loss making manufacturing units was that he was the only person who could actually work the control panel of a blast furnace himself. He knew his business inside out. This view was endorsed by an article in Forbes magazine’s June 2009 edition.
This is a book that tells the story of the Arcelor Mittal Steel takeover battle that resulted in ArcelorMittal. Any person who is fond of warfare and strategy and has done a bit of reading on these subjects will be immediately able to spot the kind of offensive and defensive strategies followed by both sides to the battle. Any person related to or interested in the field of M&As would be delighted to see big warriors of this game engaged in the biggest takeover battle that raged for about 188 days. Any person who just wants to know what happened would be amazed to see the amount of strategy and effort put in by all the people at both sides – the bankers, the lawyers, the communications and PR people, the strategists, the government representatives, the hedge funds people, the investors, the shareholders, the stakeholders and scores of others.
* It is after a while I have read such an amazing account of a real life event which, in my opinion, was a very important moment in the history of steel industry in specific and corporate history in general. It was a very important historical event from any given vantage point and this book tells the insiders story of it.
