Abramovich to aid Severstal in Arcelor merger battle
Russia's richest businessman Roman Abramovich could come to the aid of Severstal if the Russian steel group raises its bid to merge with Arcelor after losing out to a competing offer from the Mittal steel giant, a report said on Monday.
By Agencies |
MOSCOW: Russia's richest businessman Roman Abramovich could come to the aid of Severstal if the Russian steel group raises its bid to merge with Arcelor after losing out to a competing offer from the Mittal steel giant, a report said on Monday.
Abramovich is "ready to finance a raised bid" by Severstal chief Alexei Mordashov, the Vedomosti business daily reported, quoting a source close to the billionaire tycoon as saying.
"Severstal and shareholders in Evraz, including Roman Abramovich, could organise a partnership and make Arcelor a new proposal," it said.
Because Abramovich holds a 41 per cent stake in Evraz Group, one of the leading Russian steel firms, "Mordashov could discover an unexpected and powerful ally," the newspaper said.
Mittal and Arcelor, the world's two biggest steel producers, reached an agreement on Sunday to create a global steel behemoth.
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Arcelor had resisted Mittal's advances for five months and in May had announced instead a proposal to merge with Severstal a deal that touched off a rebellion among shareholders wary of coming under Mordashov's influence.Download
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