Mittal offer became acceptable: Chirac
President Jacques Chirac said today that the offer by Mittal Steel for the European steel group Arcelor had been unfriendly at the start, but "became friendly and therefore acceptable."
By Agencies |
PARIS: President Jacques Chirac said today that the offer by Mittal Steel for the European steel group Arcelor had been unfriendly at the start, but "became friendly and therefore acceptable."
"At the beginning we were faced by an unfriendly offer, which gave us no guarantee anywhere, and which justified the negative reaction of the Luxembourg and French governments," Chirac said in a television interview.
But things "changed considerably," the president said.
"The decision taken by Arcelor share-holders is based on guarantees concerning employment and the maintenance of research centres .... The unfriendly offer became a friendly one and therefore acceptable, thanks to the reaction of the French and Luxembourg governments," he said.
The accord, which must now be presented to Arcelor shareholders, will create a global steel giant, expected to control about 10 per cent of the world market.
In the new company, to be known as Arcelor-Mittal, Arcelor shareholders will hold 50.6 per cent of the capital, with those from Mittal having 49.4 per cent, of which 43 per cent would be controlled by the Mittal family.
"At the beginning we were faced by an unfriendly offer, which gave us no guarantee anywhere, and which justified the negative reaction of the Luxembourg and French governments," Chirac said in a television interview.
But things "changed considerably," the president said.
"The decision taken by Arcelor share-holders is based on guarantees concerning employment and the maintenance of research centres .... The unfriendly offer became a friendly one and therefore acceptable, thanks to the reaction of the French and Luxembourg governments," he said.
The accord, which must now be presented to Arcelor shareholders, will create a global steel giant, expected to control about 10 per cent of the world market.
In the new company, to be known as Arcelor-Mittal, Arcelor shareholders will hold 50.6 per cent of the capital, with those from Mittal having 49.4 per cent, of which 43 per cent would be controlled by the Mittal family.
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