Luxembourg to assess Mittal's Arcelor bid as shareholder; not as Gov

New Delhi, Mar 29 (UNI) The Luxembourg Government will not discriminate against L N Mittal in his bid for takeover of European steel giant Arcelor on the basis of his nationality, but would take a view, as a shareholder, whether to support the Indian suitor, based on a professional report by J P Morgan.

This was stated by visiting Luxembourg Economic and Trade Minister Jeannot Kreacke after his meeting with Commerce and Industry Minister Kamal Nath here. Mr Kamal Nath, however, said he has conveyed India's concern over many of the European Governments making comments went against giving an equal national treatment to entrepreneurs irrespective of their cast.

''The issue is not of L N Mittal, but there is an important question of national treatment,'' Mr Kamal Nath said. He said Mr Kreacke has informed him that the proposed Luxembourg legislation for regulating the takeovers, was mandated by the European Union well before the Mittal-Arcelor controversy had erupted.

As for the Double Taxation Avoidance Agreement with Luxembourg, the ministers said the negotiations were on and both the countries were keen on concluding such a pact.

Mr Kamal Nath and Mr Kreacke also reviewed the status of the bilateral trade which is on the decline. The bilateral trade has been dropping sharply by 65.04 per cent from 58.58 million dollar in 2003-04 to Rs 20.48 million dollar in 2004-05. During April-November this fiscal, the bilateral trade was just about 12.64 million.

Referring to the Mittal-Arcelor row, the visiting minister made a distinction between the Luxembourg Government, acting as a government and acting as one of the shareholders.

It is as one of the important shareholders that the Luxembourg Government has commissioned J P Morgan and based on the report by the investment banker, it would decide whether to support the Mittal bid or not.

Mr Kamal Nath also took up the multilateral issue of WTO with Mr Kreacke. There were many of the issues relating to WTO which India is engaged in with the European Union.

UNI PC SS SD RAI1702