The final theory is the productive efficiency and information effect theory (Eckbo, 1983; Stillman, 1983; Sharur, 2004) which believes that the wealth effects faced by the rivals are results obtained from the latest information at hand to the market at the time of announcement. However this latest information could contain number of justifications.
The literature has emphasised the importance of certain characteristics that have been categorised into five different areas: acquire, target, deal(Faccio, McConnel and Stolin, 2006), industry or time-period specific. In the case of ArcelorMittal we can say yhat not all of them are easily applicable but can give insights into feasable approache taken. Acquirer-specific factors like market capitalisation, management ownership and accounting numbers in the literature have been utilised substantially to describe and explain the consequence of announcement returns. A final factor effecting announcement returns is the M&A experience of the acquirer, which was found positive in the target industry (Capron and Shen, 2007). They debate that the companies having more experience have the chances to recognise more opportunities, also price them accurately as well as be certain abput their decision in buying private firms, which are tough to value(Capron and Shen, 2007). Nevertheless Capron and Shen (2007) also record the the factors that has a negative repercussions on the returns. Age of the company, target size when not in contrast with the acquirer size and also whether the company has intangibles in particular. These factors seem reasonable. Hostility of target management can also be spotted negative in Schwert (2002), while not noteworthy in Moeller, Schlingemann and Stulz (2005). The Arcelor-Mittal merger was completely political (The International Herald Tribune, February 21st, 2006. p. 3), with target management for which the European politicians bravely oppsed the deat at the start. The political factors is important here as they were in the Citicorp-Travellers merger (Otchere and Mostopo, 2007), and they should certainly be taken into consideration.

The positive factors stated by Capron and Shen (2007) dealt with whether the target was profitable prior to merger and whether it was based on the United States. According to their re