Mittal criticizes Severstal's revised proposal
Steel giant Mittal Steel on Wednesday criticized a revised proposal by Russia's Severstal on a tie-up with European producer Arcelor, which Mittal is seeking to acquire.
By Agencies |
ROTTERDAM: Steel giant Mittal Steel on Wednesday criticized a revised proposal by Russia's Severstal on a tie-up with European producer Arcelor, which Mittal is seeking to acquire.
"The new proposal from (Severstal chairman Alexei) Mordashov fails completely to deal with key shareholder concerns," said Mittal, the world's leading steelmaker. "It remains a partial transaction, undervaluing Arcelor, which is to be pushed through without a proper shareholder vote," the company addded.
"Even as restructured, it provides a great deal of control for Mr Mordashov without any control premium for shareholders. Mittal Steel remains a superior partner for Arcelor in every way."
On Wednesday Arcelor's board met in Luxembourg, where the company is based, to discuss Severstal's revised offer. The company was expected to issue a statement later in the day.
The announcement on May 26 of a planned merger of Arcelor and Severstal was widely seen by analysts as a ploy to thwart Mittal's bid for number two Arcelor.
Severstal's just-released revised terms would reduce its stake in a combined Arcelor-Severstal entity from 32 to 25 per cent.
"The new proposal from (Severstal chairman Alexei) Mordashov fails completely to deal with key shareholder concerns," said Mittal, the world's leading steelmaker. "It remains a partial transaction, undervaluing Arcelor, which is to be pushed through without a proper shareholder vote," the company addded.
"Even as restructured, it provides a great deal of control for Mr Mordashov without any control premium for shareholders. Mittal Steel remains a superior partner for Arcelor in every way."
On Wednesday Arcelor's board met in Luxembourg, where the company is based, to discuss Severstal's revised offer. The company was expected to issue a statement later in the day.
The announcement on May 26 of a planned merger of Arcelor and Severstal was widely seen by analysts as a ploy to thwart Mittal's bid for number two Arcelor.
Severstal's just-released revised terms would reduce its stake in a combined Arcelor-Severstal entity from 32 to 25 per cent.
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