The Hindu : Business : Shareholders back Arcelor as it fights off Mittal bid

Online edition of India's National Newspaper
Saturday, Apr 29, 2006

Business

Business

Shareholders back Arcelor as it fights off Mittal bid

`The board will think again if the offer is all cash'

LUXEMBOURG: Arcelor SA's board of directors won support from shareholders on Friday as they defended the company's actions to protect itself from a euro 19 billion ($23 billion) takeover attempt from Mittal Steel Co.

Chairman, Joseph Kinsch, told shareholders that Mittal was ``neither open nor transparent'' and faced down some shareholders' anger over Arcelor's move to ring-fence its recent Canadian acquisition from being resold. Mr. Kinsch said Arcelor's board acted within its mandate to protect one of its most important assets when it shifted Dofasco Inc. to a separate trust to prevent Mittal from selling off the company if its takeover was successful.

``The board of directors had to adopt quick measures to avoid a heavy loss of value for the group and for the shareholders,'' he said at the meeting.

Arcelor's opposition to the Mittal bid was not absolute, Mr. Kinsch assured shareholders, saying that the board would think again if the offer — one-quarter cash and three-quarters Mittal stock — was all cash. The board of directors ``would have to re-examine its position based on this new situation,'' Mr. Kinsch said.

Speaking to reporters later, he refused to put a price on the company, saying Arcelor could not judge because it had still not seen the formal offer, due to be launched next month.

Both Mr. Kinsch and CEO, Guy Dolle, took sideswipes at Mittal and its corporate governance. — AP

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