French ministry studying Mittal plan, no timetable

Paris, Mar 20: The French Finance Ministry said on Monday (Mar 20, 2006) it would study in detail a document submitted by Mittal Steel about its planned takeover of Arcelor, which has many steel operations in France.

''A Mittal delegation presented (the ministry's) services with an industrial plan on Friday and the ministry will now study that thoroughly and ask the Mittal team additional questions so that ultimately there can be a meeting between (Finance Minister) Thierry Breton and Mr Mittal,'' a spokesman said.

He added there was no timetable for the study.

Mittal, the world's biggest steel group which unveiled an unsolicited planned share and cash bid for Arcelor, the number two, on Jan. 27. It has already presented the 115-page detailed business plan to the governments of Spain, Belgium and Luxembourg.

The four countries constitute the home base of Arcelor which was created in 2002 in a multi-national merger.

France, where more than 26,000 jobs could be affected by a takeover, has voiced strong concerns over the hostile bid.

Belgium's finance minister has asked Arcelor to present plans as well so that the government adviser, Lazard Bank, can better weigh the alternatives.

Luxembourg, home to Arcelor's headquarters and which has a 5.6 per cent stake in the steel group, is considering changing the law in such a way that a bidder with a small free float, such as Mittal, would need to make an all-cash bid.

The chairman and chief executive of Mittal Steel, Lakshmi Mittal, has said he is worried by plans to spoil his 19.7 billion euro (.99 billion) takeover bid.

''The management of Arcelor has an idea to make this transaction fail,'' Mittal told the Saturday edition of Belgian business daily L'Echo in an interview.

''I am really worried about the obstacles that Arcelor's management and the Luxembourg Chamber of Commerce are confronting us with,'' he was quoted as saying.

However, Mittal said on Sunday he was confident of gaining enough shareholder support to complete the takeover.

''I am confident we will win, I am not even thinking beyond that. I am sure shareholders will make the right decision because they like this (consolidation) in the steel industry,'' Lakshmi Mittal told BBC Radio in an interview.

Although Mittal announced its proposed share-and-cash bid for Arcelor at the end of January, the battle remains in an initial phase as bourse regulators need to approve bid documents before investors can start to decide the outcome of the offer.

''This deal is not about power or money, it is about the consolidation of the industry. Consolidation means improving the sustainability of the industry,'' Mittal said.

Mittal shares were up 2.3 per cent at 29.60 euros at 1220 GMT (1750 IST), and Arcelor was up 0.9 per cent at 31.80 euros.

Mittal's bid values Arcelor at 30.76 euros per share, 3.3 per cent below the market price.

Reuters