Will Arcelor Mittal bid for POSCO?

KOREA: Arcelor Mittal, the world's biggest steel maker, could be interested in making a hostile takeover of South Korean steel maker POSCO Co. Ltd., the Korea Economic Daily said on Friday.

However, POSCO Co. Ltd., the world's third-largest steel maker, denied the newspaper report.

Citing an unnamed POSCO executive, the aily reported that a senior Arcelor Mittal executive expressed interest in POSCO's M&A strategy when he visited Seoul last month to meet POSCO chief executive Lee Ku-taek.

"That means that Arcelor Mittal has put POSCO on its M&A target list," the POSCO executive told the newspaper.

"The top management is pondering how to react to a potential hostile takeover bid," the paper quoted the source as saying.

At Thursday's close of 388,500 won POSCO is worth 33.87 trillion won ($35.87 billion).

POSCO, the world's third-largest steel maker, has a fragmented, foreign dominated share ownership and is seen by some as a prime target for a takeover in the wave of global consolidation that began last year when Mittal bought Arcelor to create Arcelor Mittal.

Denying the report, POSCO said that no senior Arcelor Mittal executive expressed interest in POSCO's M&A strategy when he visited South Korea last month.

The Korea Economic Daily said Arcelor Mittal, the world's biggest steel maker, could be interested in making a hostile takeover of South Korean steel maker POSCO Co. Ltd.

Roland Junck, a member of Arcelor Mittal's management board, met POSCO Chief Executive Lee Ku-taek last month, but M&A issues were not discussed, the South Korean firm said at the time.

"There was no discussion on issues related to M&A when the Mittal executive met POSCO CEO last month," an official reiterated on Friday.

The official also said the company was seeking to increase the number of investors supportive to POSCO's existing strategy to ensure stable management.