ArcelorMittal mulling Alpha Natural counter bid

NEW YORK: ArcelorMittal, the world's top steel maker, is mulling breaking up a takeover bid from Cleveland-Cliffs Inc for U.S. coal miner Alpha Natural Resources, with a counter bid, a daily newspaper reported.

ArcelorMittal had indicated its willingness to make an all-cash offer for Alpha in June, prompting the latter to seek other higher bids, the newspaper said, citing people close to the companies.

ArcelorMittal's bid was at or near $110 a share, the paper added, citing its sources.

However, a spokesman for Alpha said it has a "definite merger agreement" with Cleveland-Cliffs, for about $8.3 billion as announced in mid-July, and that Alpha was determined to see the deal to the finish line. The spokesman declined to comment on any counter bids the company may have been offered.

ArcelorMittal could also wait for the deal to break down or for it to go through, which could make the combined entity a takeover target as well, the paper said.

An ArcelorMittal spokesman reached via e-mail declined to comment on the newspaper's report. Cleveland-Cliffs did not immediately return a call seeking comment.