Request to block Mittal-Arcelor merger refused
Courts in the Netherlands and France on Monday refused to grant injunctions blocking the $41 billion merger between steel giants Mittal Steel Co NV and Arcelor SA.
By Agencies |
ROTTERDAM (NETHERLANDS): Courts in the Netherlands and France on Monday refused to grant injunctions blocking the $41 billion merger between steel giants Mittal Steel Co NV and Arcelor SA.
Legal actions launched in Rotterdam by three hedge funds and in Paris by an activist shareholder were both rejected by judges, clearing hurdles to the creation of the world' largest steel maker, as measured by sales.
The steel companies already call themselves ArcelorMittal, but three funds -- SRM Global Master Fund Ltd, Trafalgar Catalyst Fund and Trafalgar Entropy Fund -- went to court last week seeking to block the first phase of the two-step merger, when Rotterdam-based Mittal is to combine with ArcelorMittal SA, a Luxembourg holding company.
In the second phase, ArcelorMittal would merge with Luxembourg-based Arcelor, likely before year's end, creating the world's largest steel maker by sales.
Rotterdam Court judge A A Rijperman agreed with Mittal lawyers that she did not have jurisdiction in the case because ArcelorMittal and Arcelor are based in Luxembourg.
"The plaintiffs will be able to fight the second phase of the merger in Luxembourg," Rijperman said. "There is no way an injunction can take measures in what will be a Luxembourg matter."
In a brief reaction, ArcelorMittal welcomed the ruling.
"We have always been convinced that the merger process was transparent and fair to all shareholders in both companies," the company said.
Legal actions launched in Rotterdam by three hedge funds and in Paris by an activist shareholder were both rejected by judges, clearing hurdles to the creation of the world' largest steel maker, as measured by sales.
The steel companies already call themselves ArcelorMittal, but three funds -- SRM Global Master Fund Ltd, Trafalgar Catalyst Fund and Trafalgar Entropy Fund -- went to court last week seeking to block the first phase of the two-step merger, when Rotterdam-based Mittal is to combine with ArcelorMittal SA, a Luxembourg holding company.
In the second phase, ArcelorMittal would merge with Luxembourg-based Arcelor, likely before year's end, creating the world's largest steel maker by sales.
Rotterdam Court judge A A Rijperman agreed with Mittal lawyers that she did not have jurisdiction in the case because ArcelorMittal and Arcelor are based in Luxembourg.
"The plaintiffs will be able to fight the second phase of the merger in Luxembourg," Rijperman said. "There is no way an injunction can take measures in what will be a Luxembourg matter."
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In a brief reaction, ArcelorMittal welcomed the ruling.
"We have always been convinced that the merger process was transparent and fair to all shareholders in both companies," the company said.
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