- Reading comprehension involves a proof reading of a passage of about 300 – 1000 words and answering the questions that follow.
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- Read the passage below and then answer the questions that follow.
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Sunil Mittal led Bharti Airtel announced that it had completed the acquisition of Zain Telecom’s Africa operations for $10.7 billion. The company has now 180 million subscribers in 18 Asian and African nations. The company announced that it would launch the Airtel brand in Zain’s operational areas, that is all the 15 nations. Announcing the completion of the deal at a press conference here, Bharti Group Chairman Sunil Mittal said, “The transaction is the largest ever cross border deal in an emerging market and will result in combined revenues of about $13 billion.”
Bharti finally entered Africa after aborting negotiations twice for merger with MTN since 2008, with Mr. Mittal stating that in the Zain’s case, Airtel would have total control. He said “Zain Africa would now be 100 per cent subsidiary of Bharti International”. This deal would signal many new investments that would go to Africa, he added.
At present, China Mobile is the world’s largest mobile player with a subscriber base of 522 million, followed by Vodafone (348 million), Telefonica (206 million) and American Movil (201 million). Elaborating on Africa strategy, Bharti’s International Operations in-charge ManojKohli said, “the company had set a target of 100 million subscribers and $5 billion revenues by 2012-13”. Bharti has acquired Zain Telecom’s operations in 15 African nations, excluding Sudan and Morocco. Zain has operations in 17 countries in the region and is claiming to be the second largest operator after MTN. Asked whether he regretted missing a deal with MTN twice and whether that was his first choice, Mr. Mittal said, “MTN was the first opportunity that was available at that time. In MTN’s case, we would have had board control but no management control and no change in brand.” ” “
Reading Comprehension: Passage 3
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i. considers whether he has effective control of the company.
ii. wants to make sure that the Airtel name is always the name of the merged entity.
iii. considers management control more important than board control.
(i) and (ii) only
all of the above
(i) and (iii)
Asia and Africa
Zain has become insolvent in three nations.
Zain still has control in these nations and has not sold them to Airtel.
Airtel is not interested in these nations.
Airtel does not see a business opportunity in Sudan and Morocco.
in q no.1 option D should be ans because in the last paragraph it is stated that airtel can have board control but no management control that’s why they left the deal . so, it imply they consider management control more than board control
Hi, a small point to be considered for question 4. A 100% subsidiary means total control. So,(as 100% subsidiary being a commercial term) none of the options qualify as the answer. You cannot have a situation where someone has 100% control and yet do not have control over a part of its operation. Its contradictory,Request you to share your thoughts or clarify if I am wrong. Thanks and regards
Answer to first question is not completely justified. I think it should have been “All of the above”.
Hi from the info we can tell that the zian operation operate in africa under airtel “Zain Africa would now be 100 per cent subsidiary of Bharti International”. So it doesn’t change the name to airtel.
ii) It can also be interpreted that the company needs complete control of the company it takes over . There is no basis to tell if control over board is more then control over something else