When I see the Mittal Steel deal & Arcelor steel two things stand out clearly
- Never say Never die
- Goals can be achieved but there is a price
the first point is very much clear, how on earth did they get the deal? Almost the merger with russian firm was confirmed. Like the media, i assumed the doors are closed once Severstal announced the deal. But I kept saying to myself that things might change. Coz' shareholders were not happy. Of course in capitalistic society shareholders are kings and they can change things. In Tamil there is a saying instead of bribing the witness go patch up with the opposition. In this case Arcelor are a mere witnesse and the key lied in Shareholders. Dealmakers hit right on that point to turn tables. Amazing corporate story, every other B-schools would have this as a case study. 200% sure about that.
Ok at what cost do you want to meet your goal? In a different perspective it looked like Rajini's Annamalai movie where rajini just hikes the auction and the enemy looses a lot to win the auction. Though elite men in the board room would have discussed this point for sure, I still feel Severstal merger drama has been well enacted and the buy out price doubled - 23euro a share to 41euro a share. Mittal steel's biography is all about mergers (from 1997 till date) its been a merger mela. But this is the biggest off all the mergers that has happened in Mittal's World. Not sure if such a costly merger is worth it or was it well thought & forseen that the original 23-eruo a share by itself was such a knacky move?
Time will tell...
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