Arcelor execs tipped to take helm

BRUSSELS, Aug 4: Two Arcelor executives, including one who spearheaded resistance to a takeover by Mittal Steel, are front runners to lead the new group formed by the steel giants, sources close to Arcelor said on Friday.

After a takeover battle lasting almost six months Arcelor and Mittal are to join forces with Michel Wurth -- who played a vital role trying to ward off Mittal's early advances -- or Roland Junck set to take the helm at the new group.

Sources close to Arcelor said the collective board of directors will either name Deputy CEO Wurth or Executive Vice President Junck as the head of the new group on Friday.

The boards of directors of Mittal Steel and Arcelor are due on Friday to name a management board of six members, three from each group. A news conference is due to take place in London on Friday afternoon to introduce the new CEO.

Arcelor vigorously resisted Mittal's early advances, seeking an alternative merger with Russia's Severstal.

Mittal last week announced it held 92 percent of Arcelor shares.

Wurth played a key part in the takeover battle when the Luxembourg Chamber of Commerce, which he chairs, proposed an amendment to Luxembourg's new takeover rules that would have forced Mittal to make an all-cash offer for Arcelor.

The chamber of commerce asked lawmakers to adopt an amendment which stipulated that a bidder could not make a share offer if the free float in its shares was less than 25 percent, as was the case with Mittal.

The proposal, which was rejected by the parliament of Luxembourg, could have sunk Mittal's hopes of winning the takeover battle.

Wurth became less vocal in his opposition to Mittal's bid as the prospects of a friendly deal between the two rivals grew, leaving the die-hard role to Arcelor's CEO Guy Dolle, who always said a deal with Mittal carried too many risks.

Roland Junck led Arcelor's efforts to buy a 38 percent minority stake in China's Laiwu Steel.

The China Iron and Steel Industry Association, which represents the nation's 16 largest steel mills, has recently voiced opposition to the Laiwu deal.

Dolle will not be part of the new management board and is expected to leave Arcelor, but could also stay on as consultant to help the integration of the two steelmakers, the sources said.

Arcelor board member John Castegnaro told Reuters on Wednesday that two current members of the Luxembourg-based company's management board were serious candidates to replace Chief Executive Guy Dolle.

Castegnaro said that Wurth and Junck were both strong candidates.

''I know them both and I believe they are very serious and hard working candidates,'' he added.

Arcelor's CFO Gonzalo Urquijo will also be part of the new management board but is not expected to lead the new group, sources said.

Aditya Mittal, son of chairman and CEO Lakshmi, will most likely be named Chief Financial Officer of Arcelor/Mittal, a source close to Arcelor said.

REUTERS