Arcelor to hold Severstal vote, rejects Mittal

Luxembourg, June 12: Arcelor said it has agreed to rebel shareholders' demand to hold a special vote on whether to merge with Russia's Severstal in its attempt to escape Mittal Steel's bid.

The world's second largest steel maker also said it had formally rejected Mittal's sweetened offer after a meeting on Sunday.

Arcelor said shareholders would have two opportunities to express their views. ''They can vote against the Severstal transaction at the general meeting on June 30 2006 and they can also express their preference for the Mittal Steel project by tendering into the Mittal Steel offer,'' the company said in a statement.

Arcelor has been fighting off Mittal's bid, which would combine the world's top two steel makers, since late January, launching a string of manoeuvres including paying an extra dividend to its shareholders.

It hopes to merge with its Russian peer and thus scupper the Mittal deal even as shareholders appear impatient with the months-long saga. Some have demanded talks with Mittal, while others said they would launch legal objections to the Severstal deal.

Arcelor also said it had set its share buy-back scheme price at 44 euros per share.

''Following its prior decision to distribute a 6.5 billion euro amount to Arcelor shareholders, the Arcelor Board of Directors has decided that the price per share to be offered ...

shall be 44 euros per share,'' it said in the statement.

REUTERS

Related Stories