Arcelor rejects Mittal Steel bid

30th January 2006, Comments 0 comments

30 January 2006, BRUSSELS — The board of management at steel maker Arcelor has rejected a EUR 18.6 billion takeover bid from Mittal Steel. The Luxembourg-based Arcelor said on Sunday the two companies did not "share the same strategic vision, business model and values". It also advised shareholders against selling shares to Mittal.

30 January 2006

BRUSSELS — The board of management at steel maker Arcelor has rejected a EUR 18.6 billion takeover bid from Mittal Steel.
 
The Luxembourg-based Arcelor said on Sunday the two companies did not "share the same strategic vision, business model and values". It also advised shareholders against selling shares to Mittal.

Mittal Steel, the world's largest steelmaker, made the surprise takeover offer on Friday. Arcelor shares rose more than 30 percent after Mittal Steel said it would offer EUR 28.21 a share.

The bid comes as the steel industry is consolidating rapidly amid a fall in steel prices from their 2005 highs.

Arcelor employs 12,500 workers in Belgium. It was formed by the merger of Arbed (Luxemburg), Usinor (France) and Aceralia (Spain).

The Wallonian government is considered a major shareholder of Arcelor, which operates the Cockerill plant in Belgium.

Mittal Steel has its headquarters in both London and Rotterdam.

[Copyright Expatica News 2006]

Subject: Belgian news

0 Comments To This Article