Arcelor to lift dividend, pay cash to shareholders

Brussels, Apr 4: Arcelor, the world's second biggest steelmaker, said on Tuesday it would boost its 2005 dividend and additionally distribute 5 billion euros ( billion) to shareholders as it seeks remain independent.

Arcelor's 2005 dividend will rise to 1.85 euros per share from the 1.20 euros it previously announced.

Arcelor, which is trying to fend off a .1 billion unsolicited bid from rival Mittal Steel, will also transfer the shares it holds in Dofasco, a move which will hinder any potential sale of the Canadian peer.

Mittal has said that, if it succeeds in acquiring Arcelor, it would sell Dofasco to ThyssenKrupp, the German company that Arcelor outbid.

REUTERS