ArcelorMittal wraps up first stage of deal to create largest steelmaker
Mittal Steel Co NV wrapped up the first part of its $41 billion takeover of rival Arcelor SA by merging Monday into ArcelorMittal, to create the world's largest steel company.
By Agencies |
BRUSSELS: Mittal Steel Co NV wrapped up the first part of its $41 billion takeover of rival Arcelor SA by merging Monday into ArcelorMittal, to create the world's largest steel company.
ArcelorMittal, based in Luxembourg and already operating as a single company, started trading shares Monday on Euronext in Amsterdam, Paris, Brussels and smaller bourses in Spain. The steel maker will be listed on the New York Stock Exchange from Tuesday when it reopens after the Labor Day holiday.
The company will control 10 per cent of the world's steel market. ArcelorMittal must still combine with the remaining shareholders of Arcelor SA. Arcelor shareholders have not yet formally approved the merger, though more than 90 per cent tendered their shares to Mittal's August 2006 offer.
About half of Arcelor shares are now owned by hedge funds unhappy about Mittal's reduced ``squeeze-out'' offer. They tried to challenge this by seeking court orders to block the first phase of the deal last week, but Dutch and French courts last week rejected their pleas.
The second phase will be governed by Luxembourg law which the shareholders claim offer them less protection _ although they could still decide to take another court case there.
ArcelorMittal has said it will give details on how it plans to move on with the final stages of the deal before the end of September allowing the company be formed by the end of the year.
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.
ArcelorMittal said Monday it would push on with a share buyback Mittal announced in April and it planned to spend $11 million before the end of the year to top up the $579 million already paid out.
The company has said it will purchase another 27 million of its own shares when that earlier buyback is completed.
ArcelorMittal, based in Luxembourg and already operating as a single company, started trading shares Monday on Euronext in Amsterdam, Paris, Brussels and smaller bourses in Spain. The steel maker will be listed on the New York Stock Exchange from Tuesday when it reopens after the Labor Day holiday.
The company will control 10 per cent of the world's steel market. ArcelorMittal must still combine with the remaining shareholders of Arcelor SA. Arcelor shareholders have not yet formally approved the merger, though more than 90 per cent tendered their shares to Mittal's August 2006 offer.
About half of Arcelor shares are now owned by hedge funds unhappy about Mittal's reduced ``squeeze-out'' offer. They tried to challenge this by seeking court orders to block the first phase of the deal last week, but Dutch and French courts last week rejected their pleas.
The second phase will be governed by Luxembourg law which the shareholders claim offer them less protection _ although they could still decide to take another court case there.
ArcelorMittal has said it will give details on how it plans to move on with the final stages of the deal before the end of September allowing the company be formed by the end of the year.
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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.
ArcelorMittal said Monday it would push on with a share buyback Mittal announced in April and it planned to spend $11 million before the end of the year to top up the $579 million already paid out.
The company has said it will purchase another 27 million of its own shares when that earlier buyback is completed.
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