Business   

Mittal not to change offer price

Vaiju Naravane

Allays fears over job cut, closure; plans to meet Arcelor shareholders, employees

PARIS: Lakshmi Mittal, CEO of Mittal Steel, said he saw no reason to change his offer for a takeover of the second largest steel producer Arcelor. "It is an attractive offer and we have no intention of offering anything else. We will be open to discussions on the composition of management and the board," Mr. Mittal said, addressing a crowded press conference jointly with his son Aditya, Mittal Steel's Chief Financial Officer. Mr. Mittal's 18.6 billion-euro takeover bid has been described as "hostile" in France, Luxembourg and Spain where Arcelor's main plants are located. On Monday, Mr. Mittal met with French Finance Minister, Thierry Breton, one of his sharpest critics who has brandished the flag of "economic patriotism" in France.

Mr. Mittal tried to allay fears over job cutbacks and closures saying, "We do not buy plants to close them down. There will be no closures and so social plans." He said he planned to meet Arcelor shareholders and employees.

The takeover offer was unsolicited, "but not hostile", Mr. Mittal said in response to criticism from the French Finance Minister who said he was shocked by the way the takeover bid was announced. There were no prior consultations with any of the stakeholders and the announcement was made at a press conference in London.

Mr. Mittal said he had been forced to make a hasty announcement before he could start consultations with governments concerned and stakeholders because of "a leak" to the press that would have given away his plans.

Directors at the Luxembourg-based Arcelor rejected the Mittal bid on Sunday, saying the company would be better off standing alone.

The position of Luxembourg's government is also expected to be a key factor in the response.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Panel moots steps to promote corporate bonds
Mittal not to change offer price
Apollo buys Dunlop, S.Africa
Sensex breaches 9900-mark
Essar's slurry pipeline on stream
Holcim buys 14.8 p.c. stake in Gujarat Ambuja
Tatas target Rs. 2,200 cr. turnover from defence
Dubai security firm starts services
Rupee at 4-month peak
Exchange rates
Bullion rates
Uniform VAT on bullion
Bids for advisors for NMDC disinvestment
PFC to invite EoI for mega plants
Tax Advantage Fund-1 from Tata MF
Fiat Auto reports turnaround
Exim Bank signs MoU with CARE
Word of caution for financial journalists
Ramco Industries pays second interim
Madras Cements declares 50 p.c. interim
100 p.c. interim from Kirloskar Oil
Peerless General launches co-branded card

Copyright © 2006, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu