Assignment 3 (to p.41 - 60)

1. Start writing out information on the three new characters: Phil Barksdale, Wallace Boreman and Turner Prescott. Explain how they are related to Andrew Falcon on the one side and to Granville Winthrop on the other.

2. Get ready to answer the questions in class, make a list of topic vocabulary for each question and use it in your speech:

1. What kind of a CEO is Phil Barksdale? What is Falcon’s impression of Phil Barksdale?

2. What transaction is Falcon charged with?

3. Describe the two parties of the forthcoming takeover.

4. Give a short company profile for the Penn-Mar Chemicals.

5. What financial obstacles to successful completion of the transaction does Falcon point out?

6. What kind of controversy with the Federal Reserve does Falcon predict?

7. How does NASO intend to raise 20 billion dollars in order to complete the acquisition?

8. How risky is the forthcoming takeover to the US banking system according to Falcon?

9. Why doesn’t NASO want to presell their acquisition?

10. What legal problems does Falcon foresee for the takeover?

11. What’s most unusual about the terms of Barksdale’s offer to Falcon?

12. Why did Falcon accept Barksdale’s offer? Comment on Falcon’s motives and methods of attaining his goals.

13. What does the strange mark on Wallace Boreman’s hand mean? How, do you think, the whole endeavor is connected with Winthrop and the Sevens?

14. How does the Bradlee case fit the puzzle of the suspicious takeover? In what episode have you already come across the name of Turner Prescott in the previous unit? (revise the end of Unit 2).

15. What makes such professionals as Andrew Falcon and Sharon Cruz easy prey to criminal business and dangerous weapon in its hands?

16. Do you agree with the statement “the chain is only as strong as the weakest link”? Why? Why not?

3. Write a short company profile for Pen-Mar Chemicals (use the format on p.13)

4. Revise the topic vocabulary to Units 1-2 and fill in the gaps:

1. And those institutions weren't big players in the currency or derivative ______________s, the way NASO is. 2. NASO has the opportunity to become involved in a very nice _______________. 3. I figure we can do five or six bil­lion in the ______________ subsidiary alone. 4. Let's say we committed four billion in bank debt, six billion in long-term ____________ bonds, and three billion in equity. 5. “What kind of transaction is it?” – “A leveraged _________.” 6. Carter Filipelli, is not keen on the idea of banks lending into highly ______________ed, risky transactions. 7. I would think this kind of ________________ would require board approval. 8. The stock market, the bond market, the currency markets. They'd all _________. 9. The Federal Reserve would step in. They would put in whatever money was necessary to keep the bank ___________. 10. Once we've won the _________, you can call any contacts you have. 11. The absolute power of the Fed chairman flew in the face of every __________of democracy. 12. Any President who dared to replace a sitting Fed chairman against his will risked the wrath of the investment bankers, who would _________the stock and bond markets. 13. Transtar Savings Bank in Boston declared itself___________. 14. Filipelli could ___________a recession, caus­ing pain and suffering. 15. Parliament returns from its summer ______________ next week. 16. Investors feel the company is entering into too many risky ________________s. 17. He may have a large income, but he also has huge financial ____________s.

5. Find in the text English equivalents for the following words and word combinations and recollect the context in which they are used:

1) (p.42) часовой

2) (p.44) проницательный менеджер

3) (p.46) послушный, сговорчивый

4) (p.47) мусорные (бросовые) облигации

5) (p.50) сделать или сказать ч-л, опередив других

6) (p.54) необходимые денежные средства

7) (p.54) получать удовольствие

8) (p.55) регистрировать

6. Fill the gaps with the topic vocabulary from Task 5.

1. Very soon she would become the center of attention. It was a distinction she did not ________. 2. Boreman was re­garded on Wall Street as a ___________ manager willing to take reasonable risks in the name of sizeable profits. 3. European leaders were more ________ to the idea. 4. First of all, we have a securities subsidiary that can un­derwrite _________ bonds. 5. They are paranoid that if word gets out about this deal, someone else like DuPont or Hoechst will _________ them. 6. Two or three more years, and she would have the financial _________ to begin her own practice. 7. Despite Prescott's extra duties, he still managed to originate more business than any other attorney and ________ed more than his share of courtroom time.

7. Explain the meaning of the following phrasal verbs:

to head; to head for; to head off; to head up (p.43)

8. Translate into English:

1. Барксдейл был в двух шагах от кресла председателя совета директоров объединенной банковской группировки, когда его банк столкнулся с серьезными проблемами в Бразилии три года тому назад. 2. На Уолл-стрит Борман имел репутацию проницательного управляющего банком, готового пойти на разумный риск ради солидной прибыли. 3. – Вы хотите сказать, что у Национального Южного Банка появилась возможность принять участие в покупке контрольного пакета акций с использованием кредитов? В роли кого? - Финансового консультанта, организатора, кредитора, гаранта. В любой роли, какую мы захотим. 4. Борман хочет создать консультационную группу по слияниям и поглощениям в нашем банке. Он готов сделать вам предложение возглавить эту группу. 5. У Пенн-Мар около 400 миллионов размещенных акций по цене 30,5 долларов за штуку. Это означает, что совокупная рыночная стоимость их акционерного капитала превышает 12 миллиардов долларов.