Court won't block Mittal Arcelor merger

27th August 2007, Comments 0 comments

Court won't block Mittal Arcelor merger

27 August 2007

THE HAGUE (AFP) - A Dutch court in Rotterdam rejected Monday a demand by three hedge funds to block the merger of Mittal Steel and Arcelor because the steel giants had changed their initially announced share exchange ratio.

In a court hearing last Wednesday, SRM Global Master, Trafalgar Catalyst and Trafalgar Entropy had argued that the ratio of seven Arcelor shares for eight ArcelorMittal shares announced in May was unjust and asked that the merger be stopped.

On Monday, the Dutch court said that issue had not been considered, but ruled that "it could not be presumed beforehand that the plaintiffs will be prejudiced by the merger."

The hedge funds said a merger should be blocked unless it respected the exchange ratio of seven Arcelor shares for 11 ArcelorMittal as announced when Mittal made its initial takeover bid for Arcelor.

The hedge funds had hoped to block the first phase of the merger between Mittal and Arcelor. The Rotterdam court noted however that the funds could also fight the second phase of the merger in Luxembourg courts.

"There is no place in this legal claim before a Dutch court to ask for a measure that aims to interfere in what is a matter for Luxembourg," the court said.

[Copyright AFP 2007]

Subject: Dutch news

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