Mittal considers smaller stake

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Manufacturing News, Source : TheManufacturer.com
Published : 30 May 2006 12:44
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The world’s biggest steelmaker Mittal may settle for a minority stake in its rival Arcelor, according to one of its senior executives.

Mittal recently launched a €25.8 billion (£17.5 billion) takeover bid for Arcelor, but last week Arcelor announced plans to buy Russian firm Severstal in an attempt to obstruct Mittal's advances.

Under the proposed deal, 32 per cent of Arcelor will be held by Severstal's billionaire owner, Alexey Mordashov. It would create the world's biggest steelmaker with a turnover of €46 billion under the Arcelor name.

Mittal's Europe chief Roeland Baan told the Financial Times Deutschland the firm would still pursue Arcelor shares.

"It could well be that we, in the end, have 40 per cent of shares in the combined Arcelor and Severstal group," he said. "With more than 20 per cent we would be able to call an Arcelor shareholders' meeting at any time. This way, we would have a lot of power. And we would rather have this influence than no influence."