— Look at the sentences below and the information about mergers and takeovers involving fo

ur companies on the opposite page.

— Which company (A, B, C or D) does each sentence 1 - 7 refer to？

— For each sentence 1 - 7, mark one letter (A, B, C or D) on your Answer Sheet.

— You will need to use some of the letters more than once.

A

Tour operator Jarmin Travel is waiting for its chief executive and finance director to make the final decision before making a formal bid for rival HarmonAir. The two companies tried to merge five years ago, when the deal was blocked by the competition authorities. Since then the regulator has eased the criteria by which any merger would be judged. Competition lawyers say a tie-up would almost certainly be allowed this time, and industry analysts believe that both companies are eager for a merger.

B

Bus operator Barkway has been hit by stiff competition and dwindling profitability. As a result the company has been forced to scrap its plans to expand overseas and instead will concentrate on growing its existing business. The continuing decline in the company's share price has led to speculation that it may fall prey to one of its rivals. This may well prove wrong), though, as Barkway's founder and chief executive, Kerry Matthews, has persuaded the board to do everything in its power to resist a takeover.

C

Carolyn Swaine, the former chief executive of coffee shop chain Marshmont's, is trying hard to raise capital for a bid for her old company. Swaine left last year after a series of disagreements over Marshmont's future direction, and several top managers are expected to leave if she succeeds in buying the chain. Although Marshmont's is profitable, it is too small to stay independent for much longer, and even if Swaine takes control, the company will soon have to become part of a larger chain.

D

Keston, the respected maker of television programmes, has announced that it has agreed an outline deal to merge with Stardust TV. A year ago, with its profits plunging, Keston faced a strong takeover bid by another of its competitors, but fought hard against it, and has since become more profitable. The company is now convinced, however, that its future success lies in being part of a larger organisation. Both Keston and Stardust have a reputation for producing striking television programmes, and a merger is likely to be beneficial, both creatively and financially.

This company has changed its attitude towards remaining independent.