Severstal reduces Arcelor stake bid
Russian steel giant Severstal's chief executive proposed reducing his future stake in European steelmaker Arcelor from 32 per cent to 25 per cent on Wednesday to facilitate a merger as Mittal Steel seeks to undermine the union.
By Agencies |
MOSCOW: Russian steel giant Severstal's chief executive proposed reducing his future stake in European steelmaker Arcelor from 32 per cent to 25 per cent on Wednesday to facilitate a merger as Mittal Steel seeks to undermine the union.
Alexei Mordashov's announcement, reported by Russia's Interfax news agency citing a press release, comes as Arcelor's board prepared to meet on Wednesday to examine the tie-up with Severstal in order to fight a hostile takeover bid by Mittal, the world's biggest steel producer.
Arcelor's chief executive Guy Dolle on Tuesday said he would "improve" the conditions for the mooted 12-billion-euro alliance with Severstal announced at the end of May.
"It's clear that this transaction has been and will be improved answering to some of the concerns of shareholders," Dolle said.
The merger with Severstal would create the world's biggest steel group but has raised concerns among some Arcelor shareholders, in particular concerning the amount of control Mordashov would have within the merged body.
Alexei Mordashov's announcement, reported by Russia's Interfax news agency citing a press release, comes as Arcelor's board prepared to meet on Wednesday to examine the tie-up with Severstal in order to fight a hostile takeover bid by Mittal, the world's biggest steel producer.
Arcelor's chief executive Guy Dolle on Tuesday said he would "improve" the conditions for the mooted 12-billion-euro alliance with Severstal announced at the end of May.
"It's clear that this transaction has been and will be improved answering to some of the concerns of shareholders," Dolle said.
The merger with Severstal would create the world's biggest steel group but has raised concerns among some Arcelor shareholders, in particular concerning the amount of control Mordashov would have within the merged body.
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