The Hindu : Business : Luxembourg law not aimed at scuttling Mittal's bid

Online edition of India's National Newspaper
Wednesday, Mar 29, 2006

Business

Business

Luxembourg law not aimed at scuttling Mittal's bid

Special Correspondent

NEW DELHI: Luxembourg on Tuesday categorically reiterated that the objective behind its proposed takeover law is not to scuttle steel tycoon L N Mittal's bid to acquire Arcelor.

"The Government will have no role in impeding the bid. We intend to bring the (takeover) Bill in May to put in the best international practices in our economy," visiting Luxembourg Minister for Economy and Foreign Trade Jeannot Krecke told reporters here.

The Luxembourg's Government, which has a 5.6 per cent stake in Arcelor, has been opposing the $23 billion unsolicited takeover bid of Mr. Mittal.

He said the law was intended to secure the interests of shareholders both majority and minority. In a bid to allay fears among Indian entrepreneurs, Mr. Krecke said the 25 EU nations in May would have to introduce in their respective Parliaments a separate Bill similar to the one Luxembourg planned. Billing Arcelor as one of the biggest steel producers, he said the company was keen to expand its presence in India.

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