Arcelor rejects Mittal takeover offer
12 June 2006, BRUSSELS — Luxembourg-based steel maker Arcelor has rejected the revised takeover bid from larger rival Mittal Steel.
12 June 2006
BRUSSELS — Luxembourg-based steel maker Arcelor has rejected the revised takeover bid from larger rival Mittal Steel.
It is urging shareholders to support the proposed merger with Russian firm Severstal.
But Arcelor also said its group management board would meet with Mittal "to review Mittal's proposals to further improve its offer".
The Arcelor board also said it had unanimously agreed that Mittal Steel's improved offer was "inadequate as it continues to undervalue Arcelor".
It said the Severstal proposal is a "more attractive alternative from a strategic, financial and social point of view".
Arcelor, the world's second-largest steelmaker behind Mittal, agreed last month to a EUR 3 billion merger with Severstal as a counter to the hostile bid from Mittal.
That controversial move prompted protests from shareholders who wanted the Mittal offer fully explored.
Arcelor has called a shareholders' general meeting for 30 June, when the Severstal transaction can be overturned if investors representing more than 50 percent of the shares oppose it.
The European Commission has also approved Mittal's takeover bid, clearing a regulatory hurdle which would speed up the transaction.
[Copyright Expatica News 2006]
Subject: Belgian news