Arcelor rejects Mittal's
London, January 30, 2006
In a major set-back to
Mittal Steel, global number one owned by NRI Lakshmi
Mittal, the board of directors of the world's second
biggest steel group Arcelor today unanimously rejected
Mittal's USD 22.8 billion "unsolicited"
proposal for its takeover.
In a statement issued after an extraordinary board
meeting in Luxembourg, Arcelor said "after a
thorough review and analysis of the elements at its
disposal, the board has swiftly concluded that Arcelor
and Mittal Steel do not share the same strategic vision,
business model and values."
The board then expressed its concern regarding the
severe consequences that Mittal Steel's proposal could
have on the group, its shareholders, employees and
"The board of directors has resolved that it
unanimously rejects Mittal Steel's unsolicited proposal
which it considers hostile," the statement said.
The Luxembourg-based Arcelor asked shareholders not
to tender their shares in the offer, which values
them at USD 24.50 each. Mittal, the world's No. 1
steel company, launched a takeover bid for its closest
rival on Friday.
Mittal said the deal would create the world's first
100 million ton-plus steel producer, with a market
capitalization of USD 40 billion. It anticipated annual
synergies of USD 1 billion.
The Arcelor board said it believed its current strategy
offered the best guarantee of value creation for its
shareholders. The meeting was presided over by Arcelor
Chairman Joseph Kinsch. PTI HSR KSM 01300119 DEL
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