Mittal strikes back, urges Arcelor to vote against Severstal deal

Mittal Steel urged Arcelor shareholders to vote against a plan to merge with Russian steel company Severstal , in an advertisement in a London newspaper on Tuesday.

London, June 20: Mittal Steel urged Arcelor shareholders to vote against a plan to merge with Russian steel company Severstal , in an advertisement in a London newspaper on Tuesday.
Mittal Steel said the deal would give Severstal boss Alexei Mordashov control of Arcelor, "yet the transaction has been structured to allow him not to make an offer for the whole company, let alone pay a control premium".

Arcelor shareholders are due to meet on June 30 to vote on the Severstal merger after Arcelor agreed to a deal with its Russian peer to fend off a 21-billion euro ($26.44 billion) offer from Mittal.

Arcelor`s board has staunchly rejected Mittal`s bid but has mandated its management board to hold talks with the larger steelmaker, even as Arcelor goes ahead with its Severstal plan.

On Monday, Arcelor cancelled a June 21 meeting for investors to vote on a massive share buyback in light of settlement talks with Mittal Steel.

The proposed 6.5 billion euro share buyback had been seen as one of the defensive steps by Arcelor against Mittal Steel.

Bureau Report

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