Author thomas kirchner, founder of the pennsylvania avenue eventdriven fund. Under lakshmis leadership, the family owned mittal steel had grown from obscure origins in india to become the largest steel company in. Arcelormittal is committed to accurate and transparent corporate governance, and our financial reports play a key role in this. Arcelor agrees to mittal takeover the new york times. Merger arbitrage analysis and spread performance january. How to profit from eventdriven arbitrage, second edition provides the information that gives investors an edge in the merger arbitrage arena. Cultural analysis of the merger of arcelor and mittal steel with the help of hofstedes cultural dimensions gulcan, ender on. The research hypothesis represents equating the impact of the arcelor mittal merger in terms of the industry dynamics in pricing, market positioning, competitive advantages, or other areas as uncovered by research to prove or disprove the basis for the merger as a sound proposition in the face of the preceding. Some, like the mega merger in 2006 with arcelor, then europes largest steel.
Enter your mobile number or email address below and well send you a link to download the free kindle app. Lakshmi mittal, the indian steel billionaire, on sunday emerged as head of the worlds biggest steel company after an audacious fivemonth. Founded in 1989 as ispat international in sumatra, indonesia. Arcelormittal sa annual shareholders meeting may 05, 2020. Hedge fund piles pressure on mittal for equitable merger deal the. I know there are some recommended books out there like risk arbitrage wiley investment classics by guy wyserpratte. The merger arbitrage spreads list is a free list of the largest allcash deal spreads trading on major us exchanges. Was the largest producer of steel in terms of volume. On june 25, 2006, the arcelor board decided to go ahead with the merger.
Arcelormittal is committed to accurate and transparent corporate governance, and our financial reports play a key role in this arcelormittal publishes various financial reports including halfyearly reports, annual reports and arcelormittal finance reports. This is due to the risk of the merger not going through, and this risk makes merger arbitrage a somewhat risky form of arbitrage. Merger activity increased last week with four new deals announced and two deals closing. How to profit from eventdriven arbitrage by thomas kirchner, risk arbitrage by guy wyserpratte, and. With an established track record of consistent free cash flow generation, access to higher growth markets, and a commitment to lowcarbon steel making, arcelormittal is well. The company has been successfully acquired in a cash transaction and is preparing to delist from its primary exchange. Arcelormittal publishes various financial reports including halfyearly reports, annual reports and arcelormittal finance reports. In this case the focus is on investors who are active mostly in the merger arbitrage business, some guys are very well known like john paulson, paul singer or guy.
It is ranked 123rd in the 2017 fortune global 500 ranking of the worlds biggest corporations. Written by a fund manager who invests solely in merger arbitrage, also referred to as risk arbitrage, and other eventdriven strategies, merger arbitrage is the definitive book on how this alternative hedge fund strategy works. The merger arbitrage strategy merger arbitrage wiley. A detailed look at an important hedge fund strategy written by a fund manager who invests solely in merger arbitrage, also referred to as risk arbitrage, and other eventdriven strategies, merger arbitrage is the definitive book on how this alternative hedge fund strategy works. Following chapters detail deal structures, financing, and legal aspects to provide the type of indepth knowledge required to execute an effective investment strategy. Risk arbitrage, also known as merger arbitrage, is an investment strategy that speculates on the successful completion of mergers and acquisitions. Tracking the spy for the first part of the week, the mna moved sharply higher on. Written by leading activist fund manager guy wyserpratte, also known as the dean of the arbitrage community, this book provides an unparalleled overview of risk arbitragewith a clear focus on merger arbitrageand how it has been used over the years, as well as in modern markets. It concerns not only merger arbitrage as a portfolio management strategy, i. An investor that employs this strategy is known as an arbitrageur. This new edition is completely updated and fully revised to reflect the changes to laws and technology and includes new case. For those looking to gain an edge in the merger arbitrage arena, this book has everything they need to succeed. Then you can start reading kindle books on your smartphone, tablet, or.
Trouble in taranto arcelormittal gets its fingers burned. In 2006, the worlds two biggest steel companies arcelor and mittal steel bundled their forces through a merger and ended in the creation of the worlds leading steelmaking and mining company arcelormittal. Arcelormittal begins 3d printing ventilators and face shields in the fight against coronavirus. The ultimate guide to risk arbitrage fully revised and updated for global investors. I shared my thoughts on reit mergers in general a while back for the fltfcot merger deal, and to me, most of the broad trends still remain relevant.
The free merger tracker spreadsheet below contains the latest essential deal information and criteria as per official company announcements. Luxembourg a new steel giant is to be created out of a bitter battle, after arcelor formally agreed on sunday to a 26. Usually the market price of the target company is less than the price offered by the acquiring company. Namely, this is the most recent list update of merger arbitrage opportunities as of april 5, 2020. As promised in our previous post introducing this series on books that. There is a wealth of academic research on merger arbitrage. On june 25, 2006, the arcelor board decided to go ahead with the merger with mittal steel and scrapped plans for severstal steel. The new business, to be called arcelor mittal, will have an annual output of more than 100m tonnes of steel. The first by arcelormittal, followed quickly by indias largest private sector steelmaker tata steel. Arcelormittal expects pickup in steel demand after very tough year. If the deal is thus completed and the target companys stock is converted into the acquiring companys stock.
A detailed look at an important hedge fund strategy. Risk factorsrisks related to arcelormittalarcelormittals. It was formed in 2006 from the takeover and merger of arcelor by indianowned mittal steel. Also called risk arbitrage, merger arbitrage generally consists of buyingholding the stock of a company that is the target of a takeover while shorting the stock of the acquiring company. The definitive guide to risk arbitrage, fully updated with new laws, cases, and techniques.
A merger happens when two firms, often of about the same size, agree to go forward as a single new company rather than remain separately owned and operated. How to profit from eventdriven arbitrage, second edition is the definitive guide to the ins and outs of the burgeoning merger arbitrage hedge fund strategy, with realworld examples that illustrate how mergers work and how to take advantage of them. You can find all the active deals listed below in our merger arbitrage tool mat that automatically updates itself during market hours. Some of you guys have asked me for my take on the cmtcct merger. Once the merger is done if at all, youll get back your money in cash. This is a well written book by mary buffett on how she thinks her dad, warren buffett, handles the art of stock arbitrage.
Risk arbitrage is a type of eventdriven investing in that it attempts to exploit pricing inefficiencies caused by a corporate event. Agreement by arcelor to recommend the deal to investors comes after an epic tussle. Merger arbitrage is one of the most commonly used strategies but. The merger was the brain child of mittal ceo, lakshmi mittal and his son, aditya. In a stockforstock merger, a merger arbitrageur typically buys shares of the target companys stock while shorting shares of the acquiring companys stock. Written by thomas kirchner, president of the pennsylvania avenue funds and manager of the pennsylvania avenue eventdriven funda mutual fund that uses merger arbitrage as one of its investment strategiesthis is the definitive book on one of the most effective forms of arbitrage. Shareholders approve secondstep merger of arcelormittal. It is governed by a board of directors in accordance with the requirements set out in the companys articles of association. A hedge fund has accused lakshmi mittal of being unfairly prejudiced toward minority investors and called for the steel billionaire to exclude.
It involves regulatory arbitrage, where one uses one legal system to gain. Merger arbitrage is possible since a target firms stock will probably not reach the offer price until the deal is finalized and the stock is delisted. Upon effectiveness of the merger, holders of arcelormittal shares will. Arcelor and mittal agree to 27bn merger financial times. Arcelormittal orange book allows you to rapidly flip through tables on structural sections. What are the best books to learn about merger arbitrage. Arcelormittals ilva plant at risk after immunity removed italys withdrawal of protection for environmental breaches threatens thousands. Cold steel is an excellent book about mergers and acquisitions in the non glamorous but very essential steel business. He is also a teacher at the university of paris dauphine and is the cowriter of le merger arbitrage, a french reference book published in 2011 by economica.
Cultural analysis of the merger of arcelor and mittal. A fundamental approach to eventdriven investing melka, lionel, shabi, amit, zaoui, michael on. Cmt cct merger can you arbitrage the price difference. How to profit from global eventdriven arbitrage, second edition is the newly revised, authoritative guide to the ins and outs of the explosive merger arbitrage hedge fund strategy. Arcelormittal expects to fund these capital expenditures primarily through internal. Lakshmi mittal and the multibilliondollar battle for. Merger arbitrage a fundamental approach to eventdriven investing helps readers understand the inner workings of the strategy and hedge funds which engaged in this investment strategy. Luxembourg, 5 november 2007 the extraordinary general meetings of shareholders of arcelormittal and arcelor held today approved the merger of arcelormittal into arcelor.
Arcelormittal has joined forces with leading researchers and medical professionals in spain to produce ventilators, ramping up efforts to find solutions for treating coronavirus. The iq arb merger arbitrage etf however posted another positive week. Risk arbitrage is the definitive guide to the field and features a comprehensive overview of the theory, techniques, and tools that traders and risk managers need to be effective. If you do read the book it is well worth the time and it is a really short piece of writing but never the less it is powerful in nature.
Luxembourg holding signs loan agreement to refinance nippon steel acquisition. The merger of arcelor and mittal provided the new company with the size as well as clout to make a significant difference in emerging markets such as china due to its enhanced capabilities across all market and industry sectors arcelormittal, 2008b. Lionel received a masters degree in finance from the university of paris dauphine. Follows recent cut in expected iron ore prices article stock quotes 1 comments 0 free breaking news alerts from.
Early chapters of the book focus on the basics of the merger arbitrage strategy, including an examination of mergers and the incorporation of risk into the arbitrage decision. Mittals offer is conditional upon arcelors shareholders tendering more than 50% of arcelors total issued share. Trouble in taranto arcelormittal gets its fingers burned in italys ilva. Arcelormittal is the worlds largest steel producer, with an annual crude steel production of 92. Neither the risk arbitrage report nor intrinsicedge is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. How to profit from eventdriven arbitrage a detailed look at an important hedge fund strategy written by a fund manager who invests solely in merger arbitrage, also referred t. Interested in a fast paced case study of one of the biggest hostile merger in recent history, this book provides a good narrative. Epic, exhausting and riveting, private jets, private helicopters, morning in. Arcelormittal expects to fund these capital expenditure commitments and.
Essay on arcelor mittal a take over story 3358 words. Cultural analysis of the merger of arcelor and mittal steel with the help of hofstedes cultural dimensions. Mittal capped his stake under 45% and offered 12 of 18 seats on the board to independent directors, including those from the unions, and also agreed to a lock in on his shares for 5 years. But that is just the beginning mittal steel before it became arcelor mittal invested. The company was created by a merger of the former companies aceralia spain, usinor france and arbed luxembourg in 2002 arcelor is now part of arcelormittal after a takeover. Cold steel is an excellent book about mergers and acquisitions in the non. A wave of corporate mergers, acquisitions, restructuring, and similar transactions has created unprecedented opportunities for those versed in contemporary risk arbitrage techniques. The board of directors is in charge of the overall governance and direction of arcelormittal.
79 672 845 1547 1347 500 522 1167 760 176 513 255 236 1206 879 1192 1069 218 1296 1118 349 316 1401 867 1067 1289 1230 1495 300 1061 1289 1264 1472 1482 360