Mittal to wrap up Arcelor take over around Nov 13

BRUSSELS: Mittal Steel Co NV expects to wrap up its lengthy $41 billion takeover of rival Arcelor SA in November, the companies which are already operating together as the world's largest steelmaker, said on Wednesday.

In a move to appease minority shareholders holding out for better terms, Arcelor said it will ask stakeholders on November 5 to approve a capital restructuring and an extra dividend of 4 US cents "to ensure that all Arcelor shareholders will receive the same per share dividend of 32 US cents".

But this is unlikely to please shareholders complaining the squeeze-out offer does not reflect recent rises in the companies' share prices. Hedge fund activists lost legal actions to lock the deal last month.

The company will now offer eight "post-restructuring" Arcelor shares, that can be exchanged for eight Arcelor Mittal shares, or seven old Arcelor shares, saying this was consistent with a May 2007 share offer.

"This merger constitutes the second step of the previously announced two-step merger process between Mittal Steel and Arcelor," the company said, adding that it expected the deal to be fully sealed "on or about" November 1.

Mittal's acquisition of Arcelor has had a rocky road toward completion as US regulators ordered Mittal to sell off one of its major American steel plants and the Brazilian market watchdog forced it to spend up to $5.43 billion to buy out Arcelor's Latin American steel units.

The company, which has some 10 per cent of global output, already operates out of a headquarters in Luxembourg. Mittal shareholders waved through the merger deal last month.