QUESTIONS 11–20 (Open cloze)
Instructions: Read the text below and think of the word which best fits each space. Use only one word in each space. There is an example at the beginning (*). (30 points)
MERGERS AND ACQUISITIONS
The number of corporate lawyers specializing in mergers and acquisitions has increased in recent years as more and more successful businesses are using this approach as a means of (*) expansion. This growth might be solely in terms of the size of the existing business or as a means of moving into new business areas, a process more formally known as (11) .
The terms ‘merger’ and ‘acquisition’ are often referred to as if they mean the same thing, but they have significantly different meanings. A merger takes place when there has been agreement between the owners of two separate businesses to join together to form a single business (12) , a term meaning something which is legally distinct in its own right.
An acquisition, however, refers to the situation where the owners of one business take over another business and establish themselves as the new owners of both. In this situation the business that has been taken over (13) to exist entirely and becomes part of the dominant business from that point onwards.
Mergers and acquisitions can apply to any type of business but are most likely to occur with limited companies, particularly (14) Limited Companies, where the shares are traded on an open market such as the London (15) Exchange.
This is particularly the case with unfriendly acquisitions. These types of acquisitions are usually referred to as (16) takeovers, describing a situation where the target company does not wish to be bought or where the target company’s (17) of directors, the people who have been appointed to run the company on behalf of its members, has not been involved in negotiations regarding the proposed purchase before the offer is made.
One area of concern is that takeover bids often involve the aggressive party offering a lower price for shares than their true (18) value at the time of purchase with the intention of selling off the company’s (19) , for example its equipment and premises, at a profit.
The human cost of takeovers is also a major worry because it is often the case that some employees will no longer be required and will be made (20) as the company takes advantage of the economies of scale resulting from the takeover.
Correct: 0 | Incorrect: 0
Reading: Legal cases arising from M&A
Several legal cases can arise from mergers and acquisitions. Here are some examples:
- Antitrust and Competition Law Cases: Mergers and acquisitions that result in a significant market concentration may raise concerns about monopolistic practices and anticompetitive behavior.
- Shareholder Lawsuits: Shareholders of the acquiring or target company may file lawsuits alleging breaches of fiduciary duty or inadequate disclosure.
- Securities Law Violations: False or misleading statements, failures to disclose material information, insider trading, and disclosure breaches may trigger enforcement.
- Breach of Contract: Failures to fulfil contractual obligations can lead to disputes and litigation.
- Employment and Labor Law Disputes: Restructuring, redundancies, and changes to employment terms may generate claims (e.g., wrongful dismissal, discrimination).
- Intellectual Property Disputes: Transfer, protection, or alleged misappropriation of IP may become contentious.
- Regulatory and Compliance Issues: Transactions may require approvals and ongoing compliance; breaches may lead to sanctions, fines, or injunctions.
Note: The specific legal issues depend on jurisdiction, the nature of the transaction, and the facts of the deal.
Matching task: Legal cases arising from mergers and acquisitions
Перетащите типы правовых дел в соответствующие реальные кейсы. Dropzone находится в заголовке каждого кейса.
Two major supermarket chains merge, resulting in control of 70% of the national grocery market. Competitors and consumer groups complain that prices rise and choice diminishes. The competition authority launches an investigation, arguing that the merger creates a dominant market position and substantially restricts competition. The court may order divestment of stores or block the merger entirely.
After an acquisition, minority shareholders discover that the board approved the deal without properly evaluating higher competing offers. Shareholders sue the directors for breach of fiduciary duty, alleging that the board prioritised management bonuses over shareholder value and failed to act in the company’s best interests.
During merger negotiations, the acquiring company publicly announces strong future profits while concealing major pending litigation. After the merger, the litigation becomes public and the share price collapses. Regulators bring enforcement actions for misleading statements and failure to disclose material information.
A merger agreement requires the seller to transfer all intellectual property by a fixed date. After closing, the buyer discovers that several key patents were excluded. The buyer sues for breach of contract, seeking damages and specific performance.
Following an acquisition, hundreds of employees are dismissed without consultation or notice. Some workers allege wrongful termination, while others claim discrimination because older employees were disproportionately selected for redundancy.
After acquiring a tech startup, the buyer assumes it owns all software code. Former founders later claim that core algorithms were developed independently and never assigned to the company. Litigation arises over ownership and misappropriation of intellectual property.
A cross-border merger is completed before obtaining mandatory regulatory approval. Authorities impose fines and issue an injunction suspending integration activities. The companies must unwind parts of the transaction and implement strict compliance measures.
Total Questions: 0
Incorrect Answers: 0
Writing: Rewrite the letter in formal style
Yours sincerely,
[Your Name]
[Title, if applicable]
[Your Company Name]
[Your Name]
[Your Address]
[City, State, ZIP Code]
[Email Address]
[Phone Number]
[Date]
[Recipient's Name]
[Recipient's Position]
[Company Name]
[Company Address]
[City, State, ZIP Code]
Subject: Hey, we've got a problem with the merger agreement!
Hey [Recipient's Name],
Hope you're doing well. I wanted to shoot you a quick message about something pretty serious. It looks like there's been a breach of contract regarding the merger agreement we signed between [Your Company Name] and [Recipient's Company Name] on [Date of Merger Agreement].
So here's the deal: according to the agreement, both of us were supposed to do certain things to make this merger smooth and successful. But it seems like [Recipient's Company Name] hasn't held up their end of the bargain. They've totally dropped the ball on the following:
- They were supposed to transfer all their assets to us, including stuff like intellectual property rights, technology, and customer databases. But it's been ages, and they still haven't made the transfer. They're straight-up breaking the agreement here.
- Also, they were supposed to spill the beans on any important information that could affect the merger. Well, turns out they conveniently "forgot" to tell us about [Specific Information]. That's a clear violation of the agreement and has left us blindsided and unable to make informed decisions.
- As if that wasn't enough, they blabbed about confidential stuff to third parties without our say-so. We had a whole section in the agreement that said we'd keep everything hush-hush, but they couldn't keep their mouths shut. Not cool at all.
These breaches are seriously messing things up. We're losing money, our reputation is taking a hit, and worst of all, the trust we had in each other is shot. We need these breaches fixed ASAP, and we need [Recipient's Company Name] to start playing by the rules.
Here's what we expect [Recipient's Company Name] to do to make things right within [Timeframe]:
- Get their act together and transfer all the assets they were supposed to give us. No more excuses or delays.
- Spill the beans and give us any outstanding info that's important for the merger. No more hiding stuff, please.
- Stop spilling the beans to others and make sure any confidential info is kept safe. They need to show they take this seriously.
If they don't fix these breaches within the timeframe, we're gonna have to consider taking legal action to protect our rights and get the justice we deserve.
We really hope we don't have to go down that road, so we're counting on [Recipient's Company Name] to step up, own their mistakes, and make things right.
Let us know in writing that they're committed to fixing things and give us a clear plan of action to make sure they're complying.
Thanks for taking the time to read this. We're counting on you to handle this situation quickly and responsibly.
Best regards,
[Your Name]
Formal-style synonyms for colloquial expressions in the informal letter (SPOLS, index starts at 1)
1) "Hope you're doing well." — show/hide formal options
2) "I wanted to shoot you a quick message" — show/hide formal options
3) "So here's the deal" — show/hide formal options
4) "smooth and successful" — show/hide formal options
5) "hasn't held up their end of the bargain" — show/hide formal options
6) "They've totally dropped the ball" — show/hide formal options
7) "spend the beans" (re: disclosure) — show/hide formal options
8) "conveniently 'forgot' to tell us" — show/hide formal options
9) "has left us blindsided" — show/hide formal options
10) "they blabbed about confidential stuff" — show/hide formal options
11) "without our say-so" — show/hide formal options
12) "keep everything hush-hush" — show/hide formal options
13) "couldn't keep their mouths shut" — show/hide formal options
14) "Not cool at all." — show/hide formal options
15) "These breaches are seriously messing things up." — show/hide formal options
16) "We're losing money" — show/hide formal options
17) "our reputation is taking a hit" — show/hide formal options
18) "the trust ... is shot" — show/hide formal options
19) "fixed ASAP" — show/hide formal options
20) "start playing by the rules" — show/hide formal options
21) "Get their act together" — show/hide formal options
22) "No more excuses or delays." — show/hide formal options
23) "Stop spilling the beans" (re: third parties) — show/hide formal options
24) "we're gonna have to consider taking legal action" — show/hide formal options
25) "get the justice we deserve" — show/hide formal options
26) "We really hope we don't have to go down that road" — show/hide formal options
27) "step up, own their mistakes" — show/hide formal options
28) "make things right" — show/hide formal options
29) "Let us know in writing" — show/hide formal options
30) "give us a clear plan of action" — show/hide formal options
31) "Thanks for taking the time to read this." — show/hide formal options
32) "We're counting on you" — show/hide formal options
Translate the following response letter into English
Variant 1
Мы подтверждаем получение вашего письма от [дата], касающегося Договора о слиянии, заключённого [дата].show / hide English
Мы относимся к поднятым в вашем письме вопросам со всей серьёзностью и ценим возможность дать по ним разъяснения. show / hide English
Хотя мы не признаём, что все указанные нарушения возникли вследствие намеренного неисполнения обязательств, мы признаём, что некоторые положения Договора ещё не были полностью выполнены. show / hide English
Задержка с передачей оставшихся активов была вызвана административными и техническими причинами. show / hide English
В настоящее время предпринимаются немедленные меры для завершения передачи активов. show / hide English
Мы также признаём, что определённая информация могла быть раскрыта несвоевременно. show / hide English
Вся существенная информация будет предоставлена в полном объёме без дальнейших задержек.show / hide English
Мы остаёмся привержены урегулированию ситуации мирным путём и успешному завершению сделки. show / hide English
Variant 2
Мы ссылаемся на ваше письмо от [дата], в котором утверждается наличие нарушений Договора о слиянии. show / hide English
Мы категорически отвергаем утверждение о том, что наша компания нарушила условия Договора. show / hide English
Изложенные в вашем письме обвинения являются неточными, неполными и основаны на неверном толковании договорных положений. show / hide English
Все активы, подлежащие передаче в соответствии с Договором, были либо переданы надлежащим образом, либо остаются обусловленными выполнением предварительных условий. show / hide English
Мы отрицаем наличие каких-либо нарушений обязательств по раскрытию информации. show / hide English
Мы также не располагаем доказательствами несанкционированного раскрытия конфиденциальной информации. show / hide English
В связи с вышеизложенным мы не признаём никакой ответственности за заявленные убытки. show / hide English
При этом мы оставляем за собой все права и средства правовой защиты, предусмотренные договором и применимым законодательством. show / hide English