LONDON: Steel giant Arcelor on Monday rejected the 25 billion euros unsolicited acquisition bid by Mittal Steel but agreed to meet officials of the world's largest steel maker to review its proposal to further improve the offer.

The Arcelor board "unanimously'' rejected the offer, saying it is "inadequate as it continues to undervalue Arcelor'' and recommended "shareholders support the proposed merger with the Russian steel group Severstal and set the price per share of the self-tender at Euro 44 — six euros more than offered by Mittal,'' Arcelor said in an official statement.

Luxumbourg-based steel giant decided not to commence "such self tender offer until after the publication of Mittal Steel's offer results while mandating the Group Management board to meet with Mittal Steel in order to review its proposal to further improve its offer.''

Pitching for the deal with the Russian steel group, the Arcelor board, which met in Luxumbourg on Sunday, also asked its shareholders to support the Severstal transactions at the General Body meeting on June 30. Stating that Severstal transactions were a more "attractive alternative from a strategic, financial and social point of view,'' Arcelor took a dig at Mittal Steel, saying that "the revisions of Mittal Steel's offer, announced on May 19 demonstrate that its initial offer undervalued Arecelor.

Soon after rejection of its bid by Arcelor, Mittal Steel on Monday said it had not made any improved offer nor had any intention to do so.

"Mittal Steel has not made any proposal to improve the financial terms of its offer and has no intention to do so. We have made a very compelling offer to shareholders offering a 70 per cent premium to the pre-offer all-time high share price of Arcelor,'' a statement from Mittal said.

"Mittal Steel would like to reaffirm that its proposal to further improve the offer in the context of a recommended transaction relates only to certain corporate governance initiatives designed to preserve and promote the Arcelor model,'' the statement said.

PTI

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