The press is full of reports on how oil industry mergers and acquisitions are affecting operating companies, service-supply firms, workers, and local economies. But no one mentions how the deluge of such deals affects the journalists who write those stories.
There have been several M&A transactions in the catalyst industry in the past 2 years, for instance. This prompted OGJ Refining/Petrochemical Editor Thi Chang to add an entire section on catalyst sector M&A activity to the article that accompanies the Journal's latest biennial survey of refining catalysts (p. 45).
Such a move is a rare occurrence for a technical editor. We news editors, however, have written story after story about Company A buying out Company B.
It's not that M&A stories are boring. Just look at the recent battle between French majors Elf Aquitaine and TotalFina SA. With its series of moves and countermoves orchestrated by powerful executives, the saga read like the plot of a Hollywood movie starring Michael Douglas and Al Pacino. (The French version would star Gerard Depardieu and Daniel Auteuil, and it would be much better.)
Nevertheless, there is a certain amount of repetition involved in writing M&A stories, which is why I have created a template to facilitate the task.
Headline (choose one):
Company A inks merger deal with Company B
Company A launches unsolicited bid for Company B
Story:
Company A has (signed a definitive merger agreement with/launched an unsolicited takeover bid for) Company B. The deal, valued at $XXX (million/billion), would create (the world's/insert country name's) Xth largest (insert appropriate industry sector) company.
The new firm, to (be called Company A-Company B/retain the Company A name), will be headquartered in (insert city where larger of two companies was located). It will have a total enterprise value of $XXX (million/billion).
(Under terms of the agreement/If Company B's stockholder's accept Company A's offer), X shares of Company A stock will be exchanged for every Y shares of Company B's. (The firms/Company A) expect(s) to achieve synergies of $XXX (million/ billion) per year as a result of the transaction. The deal will be (accretive/dilutive) to Company A's earnings (within 1 year of/in the first year following) completion of the transaction.
CEO A said, "This transaction is a win-win deal for both companies and will likewise benefit our shareholders, our employees, and our customers."
CEO B said, ("We couldn't have found a better partner than Company A."/"We believe that Company A is attempting to take unfair advantage of our stockholders by launching this hostile takeover at a time when our share price reflects a general industry downturn.") ("Our operations and our corporate cultures are complementary."/"Our board of directors urges all shareholders not to tender their shares to this unsolicited and undesirable offer.")
The transaction is expected to close (insert date here).
My only regret is that I was a bit slow in devising a way to "work smarter." Now that the industry is recovering from its extended downturn, the need for this handy template will likely dwindle in the coming months. In the meantime, however, I'll sharpen my pencil and prepare to fill in some blanks.
Anne K. Rhodes
Chief News Editor
