ArcelorMittal shareholders to seal Arcelor deal

Luxembourg, Nov 5: ArcelorMittal, the world's largest steelmaker, is set to receive a last go-ahead from investors to finalise the merger between former rivals Mittal Steel and Arcelor when shareholders meet here on Monday.

Arcelor shareholders accepted a 26 billion euro ($37 billion) friendly offer from Mittal in June 2006 after an acrimonious takeover battle, but investors representing 6 percent of the stock decided not to tender their shares.

ArcelorMittal, whose shareholders meet on Monday along with those of Arcelor to approve the deal, is now offering eight of its shares for seven in Arcelor to the minority stockholders. It had offered 11 for seven in last year's takeover.

A number of minority shareholders argue the ratio is too low and have tried unsuccessfully to stop the merger. They now are considering seeking damages once the transaction is fully effective and Arcelor no longer trades as a separate entity.

ArcelorMittal has repeatedly dismissed criticism that it was paying too little and said it was confident the exchange ratio reflected the intrinsic value of both companies.

Reuters
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