Mittal to go ahead with Arcelor bid

London, May 27 (UNI) Steel tycoon Lakshmi Mittal will press ahead with his bid to acquire Arcelor, despite latest revelations that the Luxembourg-based group plans to merge with Russia's Severstal.

Arcelor yesterday announced that it had agreed to buy Russia's Severstal to create the world's biggest steelmaker, in a 13 billion-euro deal giving Severstal Head Alexie Mordashov, a 32 per cent stake in Arcelor.

But Mittal said his bid offered better value to Arcelor's shareholders and would create a stronger industrial group.

''We are determined to complete our approach to Arcelor. It is in the interests of all the shareholders and all the parties involved, in both financial and industrial terms,'' he told French daily Le Figaro today.

He said, "We are offering to involve (shareholders) in the construction of a European champion, the undisputed world leader. I am convinced they will recognise the strength of our project. This alliance makes obvious sense.'' Condemning the Arcelor-Severstal deal, Mr Mittal said, ''It is a creeping takeover done below the current share price of Arcelor. If Mr Mordashov wants to take control of Arcelor, he has to launch an offer for the whole of its capital with a premium for shareholders.'' ''We hope for the most democratic process possible, which offers a real choice to Arcelor shareholders,'' he added.

The Severstal deal is due to be presented to Arcelor shareholders at a meeting set provisionally at the end of June. For it to be rejected, a majority would have to vote against it.

UNI XC CS PC1655