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 the announcement. However, this latest information could contain a 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 that not all of them are easily applicable but can give insights into feasible approach 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 affecting 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 about their decision in buying private firms, which are tough to value(Capron and Shen, 2007). Nevertheless, Capron and Shen (2007) also record the factors that have negative repercussions on the returns. Age of the company, targets size when not in contrast with the acquirer size and also whether the company has intangibles in particular. These factors seem reasonable. The 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 opposed the death at the start. The political factors are 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 the merger and whether it was based on the United States. According to their research both the locatio