HVB & UniBanka to merge in Slovakia

URL: http://www.newsflashenglish.com/150307UniCreditBank.htm

15^th March 2007

THE ARTICLE

HVB & UniBanka to merge in Slovakia

Two of Slovakia’s well known banks are due to merge at the beginning of next month. German owned HVB Bank and Italian owned UniBanka on April 2^nd 2007 will merge to form UniCredit Bank. It will create the fourth largest network of branches in the country behind those of VUB, Tatra and Slovenská Sporitel’ňa Bank. UniCredit Bank will have almost 90 branches all over Slovakia. “It is the biggest merger of banks on the Slovak market to date. The two small banks will create a strong banking house belonging to the largest group in Central and Eastern Europe,” announced Jozef Barta, the Chairman of the Board of Directors of the future UniCredit Bank. “Slovakia is the first country within UniCredit Group, where the banks, so far independent, have been consolidated. The banks will merge step by step on all markets where UniCredit Group operates,” added Gianni Franco Papa, the Vice-Chairman of the Board of Directors of the future UniCredit Bank in Slovakia.

UniCredit’s Head Office will be at Šancová Street in Bratislava. The banks general design of the branches will gradually change. It will focus universally on all types of customers from individual, through small and medium entrepreneurs, large companies, up to private customers. It will also be a financing leader. The consolidation will bring more products and higher quality services. The merger in Slovakia follows on from the international merger of Unibank and HVB at the end of 2005 when UniCredit Bank was formed. Operating in 20 European countries it provides services to 35 million customers through 7,000 operational units. It is number one in Austria, number two in Italy and Germany. The merger further consolidates the Slovak Banking market which in recent years has seen several smaller banks merge.

START

1. UNICREDIT BANK MERGER: What do you know about the UniCredit Bank merger in Slovakia? What do you know about HVB or UniBanka? Go round the room swapping stories. Change partners often.

2. DICTATION: The teacher will read the article slowly and clearly. Students will write down what they hear. The teacher will repeat the passage slowly again.

Self correct your work. Compare your work with your partner(s) and try to recreate the full text. Listen again to check, fill in spaces or correct mistakes. Be honest with yourself on the number of errors. Advise the teacher of your total no of errors. Less than 5 is very good. 10 are acceptable. Any more is room for improvement! More than 20 - we need to do some work!

3. READING: Get students to read the passage aloud. Swap readers every paragraph.

4. CHAT: In pairs / groups, decide which of these topics or words from the article are most interesting (circle) and which are most boring (underline).

Banks / network / the board of Directors / UniCredit Group / Head Office / merger / Banking market / branches / consolidate / Central & Eastern Europe

Have a chat about the topics you liked. For more conversation, change topics and partners frequently.

5. BANK MERGERS: Swap partners! Think of three advantages and disadvantages of banks merging. Compare and discuss with your partner(s).

Advantages Disadvantages

1 1

2 2

3 3

The teacher will choose some pairs to discuss in front of the class.

6. OTHER MERGERS: Think of three other mergers or failed mergers – banking or non banking - that have taken place in your country/another country during the last 5 years. Discuss with your partner.

1 2 3

7. QUICK DEBATE: Students A believe merging two banks isn’t a good idea for the staff and explain why. Students B believe merging banks for the staff is a good idea. Debate this with your partners. Change partners often.

8. BANK DEPARTMENTS: Look at each of the following bank departments/divisions. With your partner(s), talk about each one. What do they do? How will a merger affect each department?

Credit Card Services Mortgage Department Branch Banking Head Office Your office / department

Accounts Department IT Department Securities Department International Banking Your choice

9. BANK MERGERS: Spend one minute writing down all of the different words you associate with bank mergers. Share your words with your partner(s) and talk about them. Together, put the words into different categories.

10. THREE SENTENCES: Choose six/nine of these words. Write three sentences using two/three words in each. Try to associate them with bank mergers. Discuss with your partner. Spend five minutes on this exercise.

11. SENTENCE STARTERS: With your partner(s), finish these sentence starters. Change partner(s) and talk about the sentences you made.

a) Two __________________________________________________________

b) The new bank __________________________________________________

c) The merger ___________________________________________________

d) UniCredit’s ____________________________________________________

e) HVB & Unibank _________________________________________________

f) The Chairman _________________________________________________

g) Job cuts ______________________________________________________

h) More products __________________________________________________

12. HISTORY: Spend five minutes with your partner(s) discussing the changes in banks in your country over the last 30 years. Just how have they changed?

The teacher can select some students to discuss their findings to the class.

AFTER READING / LISTENING

1. TRUE / FALSE: After reading the article guess whether these sentences are true (T) or false (F):

a.	Two of Slovakia’s well known banks are due to merge in May	T / F
b.	The merger will create the third largest network of branches	T / F
c.	UniCredit Bank will have over 190 branches	T / F
d.	The merger will form the largest group in Central & Eastern Europe	T / F
e.	The banks will merge step by step	T / F
f.	The international merger of UniBanka & HVB took place in 2004	T / F
g.	UniCredit Group operates in 25 European countries	T / F
h.	It is number two in Austria, number one in Germany and Italy	T / F

2. SYNONYM MATCH: Match the following synonyms from the article:

a.	Merge	Overall
b.	Network	Concentrate
c.	Customers	A large system
d.	Entrepreneurs	Areas
e.	Quality	Number 1
f.	Leader	Slowly
g.	Focus	Clients
h.	Markets	Businessmen
i.	General	Improved
j.	Gradually	Consolidate

3. PHRASE MATCH: Match the following phrases from the article (sometimes more than one combination is possible):

a.	Two of Slovakia’s	the fourth largest network of branches
b.	German owned HVB Bank	will create a strong banking house
c.	It will create	will merge step by step
d.	UniCredit Bank	number two in Italy and Germany
e.	The two small banks	more products and higher quality services
f.	The banks	will have almost 90 branches
g.	UniCredit’s Head Office	the Slovak banking market
h.	The consolidation will bring	and Italian owned UniBanka
i.	It is number one in Austria,	will be at Šancová Street
j.	The merger further consolidates	well known banks

GAP FILL: READING

Put the words into the gaps in the text.

HVB & UniBanka to merge in Slovakia Two of Slovakia’s well known banks are due to ______ at the beginning of next month. German owned HVB Bank and Italian owned UniBanka on April 2^nd 2007 will merge to form UniCredit Bank. It will ______ the fourth largest ________ of branches in the country behind those of VUB, Tatra and Slovenská Sporitel’ňa Bank. UniCredit Bank will have _______ 90 branches all over Slovakia. “It is the biggest merger of banks on the Slovak market to date. The two small banks will ______ a strong banking house belonging to the largest group in Central and Eastern Europe,” announced Jozef Barta, the Chairman of the Board of __________ of the future UniCredit Bank. “Slovakia is the first country within UniCredit Group, where the banks, so far __________, have been consolidated. The banks will merge step by step on all ________ where UniCredit Group operates,” added Gianni Franco Papa, the Vice-Chairman of the Board of Directors of the future UniCredit Bank in Slovakia.

create Directors independent network almost markets create merge

UniCredit’s Head Office will be at Šancová Street in Bratislava. The banks ________ design of the ________ will gradually change. It will focus universally on all types of customers from individual, through small and medium entrepreneurs, large companies, up to private customers. It will also be a financing leader. The _____________ will bring more ________ and higher quality services. The merger in Slovakia follows on from the _____________ merger of Unibank and HVB at the end of 2005 when UniCredit Bank was formed. Operating in 20 _________ countries it provides ________ to 35 million customers through 7,000 operational units. It is number one in Austria, number two in Italy and Germany. The merger further consolidates the Slovak Banking market which in recent years has seen ________ smaller banks merge.

services products several European international general consolidation branches

GAP FILL: LISTENING:

Listen and fill in the spaces.

HVB & UniBanka to merge in Slovakia

Two of Slovakia’s well known banks ________________ at the beginning of next month. German owned HVB Bank and Italian owned UniBanka on April 2^nd 2007 will merge to form UniCredit Bank. It will create the ______________________ of branches in the country behind those of VUB, Tatra and Slovenská Sporitel’ňa Bank. UniCredit Bank will have almost 90 branches all over Slovakia. “It is the biggest ______________________ Slovak market to date. The two small banks will create a strong banking house belonging to the largest group in __________________________,” announced Jozef Barta, the Chairman of the Board of Directors of the future UniCredit Bank. “Slovakia is the first country within UniCredit Group, where the banks, __________________, have been consolidated. The banks will merge step by step on all markets where UniCredit Group operates,” added Gianni Franco Papa, the Vice-Chairman of the Board of Directors _______________________ Bank in Slovakia.

UniCredit’s Head Office will be at Šancová Street in Bratislava. The banks general design ____________________ gradually change. It will focus universally on all types of customers from individual, through small and medium entrepreneurs, large companies, up to private customers. It will also be a financing leader. The consolidation _________________________ and higher quality services. The merger in Slovakia follows on from the international merger of Unibank and HVB _____________ 2005 when UniCredit Bank was formed. Operating in 20 European countries it provides services to 35 million customers through 7,000 operational units. It is number one in Austria, number two in Italy and Germany. The merger ____________________ the Slovak Banking market which in recent years ________________________ banks merge.

DISCUSSION

STUDENT A’s QUESTIONS (Do not show these to student B)

a) Did the headline make you want to read the article?

b) Did anything in the article surprise you?

c) Do you know anyone who works in a bank?

d) Do you think working in a bank is a good job?

e) Would you want to work in a bank?

f) What do you think about the merger between UniBanka & HVB?

g) Do you think the merger will bring job cuts?

h) Do you think the banks will save money by merging?

i) What do you know about the merger?

j) How do you think the other banks will react to the merger?

$---------------------------------------------------------------------

STUDENT B’s QUESTIONS (Do not show these to student A)

a) Did you like reading this article?

b) What do you think about what you read?

c) Do you think UniCredit’s branch network in Slovakia in the future will expand or contract?

d) Do you know of any other banks that have merged?

e) Which is the best bank and why in your country?

f) Do you think more banks will merge in your country?

g) What other benefits do mergers bring?

h) Does the customer benefit?

i) Do the shareholders benefit?

j) Did you like this discussion?

AFTER DISCUSSION: Join another partner / group and tell them what you talked about.

1. What was the most interesting thing you heard?
2. Was there a question you didn’t like?
3. Was there something you totally disagreed with?
4. What did you like talking about?
5. Which was the most difficult question?

SPEAKING

PRESS: ROLE PLAY: SPEAKING Divide into teams of 2, 3 or 4

A meeting is about to take place between the Human Resources Department and invited guests…

Student A. You are customer of one of the banks about to merge. You want to know what is going to happen to your account? Ask searching questions as you are confused by it all.

Student B. You are a member of staff. You are overworked and underpaid! You are fed up with it all. Get it off your chest! Moan. Then be happy you have a job.

Student C. You are a member of Human Resources. You are here to answer questions from everyone. You have a heart and can lift people up when they are down. Explain what you can of the merger.

Student D. You are a top manager. You are waiting to hear whether or not you will have a job or not after the merger takes place. You are concerned as you have a wife/husband and two kids to look after and feed. You have a big mortgage.

Role play: Students A, B and D each prepare five questions to ask the Human Resources representative. In turn the Human Resources representative also prepares five points to mention.

Listen to everyone’s response. Act off cuff. React and respond accordingly to everyone’s comments.

Good luck!

The teacher will select some students to role play their situations in front of the class.

LANGUAGE: CORRECT WORD: Choose the correct words from a–d below and write them in the article.

Two of Slovakia’s well known (1) ____ are due to merge at the beginning of next month. German owned HVB Bank and Italian owned UniBanka on April 2^nd 2007 will merge to (2) ____ UniCredit Bank. It will create the (3) ____ largest network of branches in the country behind those of VUB, Tatra and Slovenská Sporitel’ňa Bank. UniCredit Bank will have almost 90 branches all over Slovakia. “It is the biggest merger of banks on the Slovak (4) ____ to date. The two small banks will create a strong banking house belonging to the (5) ____ group in Central and Eastern Europe,” announced Jozef Barta, the Chairman of the Board of Directors of the future UniCredit Bank. “Slovakia is the first country within UniCredit Group, where the banks, so far independent, have been consolidated. The banks will merge step by step on all markets where UniCredit Group operates,” added Gianni Franco Papa, the Vice-Chairman of the Board of Directors of the future UniCredit Bank in Slovakia.

UniCredit’s Head Office will be at Šancová Street in Bratislava. The banks general design of the branches will gradually change. It will focus (6) ____ on all types of customers from individual, through small and medium entrepreneurs, large companies, up to private customers. It will also be a financing leader. The consolidation will bring more (7) ____ and higher quality services. The (8) ____ in Slovakia follows on from the international merger of Unibank and HVB at the end of 2005 when UniCredit Bank was formed. (9) ____ in 20 European countries it provides services to 35 million customers through 7,000 operational units. It is number one in Austria, number two in Italy and Germany. The merger further (10)____ the Slovak Banking market which in recent years has seen several smaller banks merge.

1.	(a)	shops	(b)	banks	(c)	stations	(d)	brokers
2.	(a)	create	(b)	forming	(c)	foam	(d)	form
3.	(a)	second	(b)	third	(c)	fourth	(d)	fifth
4.	(a)	market	(b)	street	(c)	precinct	(d)	arcade
5.	(a)	smallest	(b)	largest	(c)	mid sized	(d)	medium sized
6.	(a)	university	(b)	wholly	(c)	universally	(d)	a little
7.	(a)	produce	(b)	projects	(c)	professionals	(d)	products
8.	(a)	de-merger	(b)	expansion	(c)	merging	(d)	merger
9.	(a)	Operated	(b)	Operate	(c)	Operation	(d)	Operating
10.	(a)	consolidates	(b)	shrinks	(c)	reduces	(d)	consolidating

HOMEWORK

1. VOCABULARY EXTENSION: Choose several of the words from the text. Use a dictionary or Google’s search field (or another search engine) to build up more associations / collocations of each word.

2. INTERNET: UNICREDIT GROUP: Search the Internet and find more information about UniCredit Group. Talk about what you discover with your partner(s) in the next lesson.

3. NEWSPAPER ARTICLE: Imagine you work a bank that is about to merge. Describe the preparation you might have to do ahead of the merger. Include the stress, difficulties, overtime and fun involved! Not too mention perhaps an office move. Write a 200 word article on how it will affect you. Read what you wrote to your classmates in the next lesson. Which article was best and why?

4. NEWSPAPER ARTICLE: Write a 200 word article on the advantages and disadvantages of merging two companies. Read what you wrote to your classmates in the next lesson. Which article was best and why?

5. NEWSPAPER ARTICLE: Write a 300 word article on the changes that have taken place in the banking industry in your country over the last 30 years. Read what you wrote to your classmates in the next lesson. Which article was best and why?

ANSWERS

TRUE / FALSE:

a. F

b. F

c. F

d. T

e. T

f. F

g. F

h. F

SYNONYM MATCH:

a.	Merge	Consolidate
b.	Network	A large system
c.	Customers	Clients
d.	Entrepreneurs	Businessmen
e.	Quality	Improved
f.	Leader	Number 1
g.	Focus	Concentrate
h.	Markets	Areas
i.	General	Overall
j.