Book Review: Cold Steel

The authors of this book Tim Bouquet and Byron Ousey have taken the readers through the action that took place before the merger of two big steel companies, U.K. based Mittal Steel and Luxembourg based Arcelor. The amalgamation of the companies of this size involves multiple countries' government, different government authorities, controlling shareholders and minority shareholders. The book takes the readers through the world of investment banking as well where the two companies advised by their investment bankers were trying to better each other.

The book starts with a prologue about steel, how steel has changed the world for better. While all of us have studied inorganic chemistry in our high schools, it was a good refresher to read about how the pure iron has high impurities content and how it can be made better by passing cold air through the molten coke in a blast furnace. Bessemer Converter and alloys like steel with chromium making stainless steel reminded of the high school chemistry course. The book then introduces readers to Lakshmi Niwas Mittal, the protagonist of this book along with his family and his initial years as to how he built his steel empire. The book also introduces the readers to another person who also rose through the ranks and was the Chief Executive of Arcelor then, Guy Dolle'. 

The deals of this magnitude across geographies cannot be made without the involvement of the government authorities, PR advisers, legal advisers, investment bankers and commercial bankers. The book is written like a thriller where the readers are taken through the series of offers and counter-offers. The authors gave comprehensive details of how the Mittal steel made an offer to the shareholders of Arcelor in a hostile takeover bid and then the steps taken by Arcelor to resist the deal on the grounds of valuation and the lack of synergies between the two companies. The readers are also exposed to some of the jargon of the mergers and acquisitions like white knight, poison pills etc. An elementary understanding of corporate finance will help to understand few of the nuances better. I started reading the book slowly; but after crossing the first hundred pages, the pace picked up because of the thrill involved. The tone of the book is pro-Mittal and it gave a good glimpse of a person who had his vision of the steel industry and how he went about making that vision into reality. I will not say that this is the best book that I have read so far; but still it was an interesting read.