Mittal launches Arcelor takeover bid
18 May 2006, BRUSSELS — Mittal Steel has officially launched its bid for rival Arcelor after the go-ahead from European regulators.
18 May 2006
BRUSSELS — Mittal Steel has officially launched its bid for rival Arcelor after the go-ahead from European regulators.
France, Belgium and the Luxembourg regulators have already given approval for Mittal's EUR 21 billion hostile takeover bid for steel firm Arcelor.
US regulators have also cleared the deal on antitrust grounds, but Mittal is still waiting for EU-level regulatory approval. The EU is set to approve the deal by 7 June
Mittal, the world's largest steel group by volume, is offering a mix of cash and equity during its Arcelor offer period extending until 29 June.
But the Luxembourg-based Arcelor has repeatedly voiced its opposition to the bid.
Areclor has urged shareholders to preserve its independence and has already promised an increased 2005 dividend and a EUR 5 billion share buyback above market level to convince them.
Should the merger go ahead, it will create a steel industry colossus, but heavy jobs cuts in Belgium are feared.
[Copyright Expatica News 2006]
Subject: Belgian news