Report On Arcelor- Mittal Merger “A Union of Titans”

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Divya khemani (08-111-819)

They have pioneered the use of direct reduced iron (DRI) as a raw material source and are now the world’s biggest producer of DRI. operating a range of modern technologies. spanning four continents. Ross Member of the Board of Directors Narayanan Vaghul Member of the Board of Directors Ambassador Andrés Member of the Board of Directors Rozental René Lopez Member of the Board of Directors Muni Krishna T.2 million tons and revenues of over $28. engineering and appliance sectors. Kaden Member of the Board of Directors Vanisha Mittal Bhatia Member of the Board of Directors . Reddy Member of the Board of Directors Lewis B. They employ 224. many of them formerly public sector-owned companies. Mittal Steel has set the pace for the consolidation and globalization of the world steel industry. Mittal Steel is among the most efficient steel producers in the world. Their capital investment programme is unmatched in the industry.BACKGROUND MITTAL STEEL Mittal Steel is the world's largest and most global steel company. and made successes of them. In the process they have spread best practice and modern production techniques throughout their plants. spanning 150 countries. Mittal Chairman of the Board of Directors and Chief Executive Officer Aditya Mittal Member of the Board of Directors and President and Chief Financial Officer Wilbur L.000 people spanning 49 different nationalities. They are also among the most advanced steel makers. includes household names in the automotive. A force in every segment of the steel market. combining both integrated and mini-mill facilities and producing much of the iron ore and coking coal used in their furnaces. They have taken on a range of acquisitions. with shipments of 49. Mittal Steel produces a broad range of high-quality finished and semi-finished products for the flat and long products markets. BOARD OF DIRECTORS Lakshmi N. Their 5000 strong customer base. They own steel-making facilities in 16 countries.1 billion in 2005. They encompass all aspects of modern steelmaking. Their shares are listed on the New York and Amsterdam stock exchanges. their product development teams are ready to meet the needs of the most demanding customers. With two technical research facilities.

Over the years. together with the simultaneous announcement of the acquisition of International Steel Group in the US to form the world’s largest steel producer. India on June 15. Mr. Mittal was awarded Fortune magazines “European Businessman of the Year 2004”. Mittal is the Chairman and CEO of Mittal Steel Company. Mr. He is married to Usha Mittal. Renamed as Ispat Mexicana. and mining. He was born in Sadulpur in Rajasthan. Mittal’s ability to guide the company in its identification. Previously. Lakshmi N. he was awarded “Steelmaker of the Year” in 1996 by New Steel in the USA. and the “Willy Korf Steel Vision Award” in June 1998. MITTAL STEEL GROWTH TIMELINE Year Acquired 1989 1992 Description Iron & Steel A modern technologically advanced Steel Complex. spanning 4 continents. Mr. Vanisha Mittal. power generation and distribution.LAKSHMI N. for outstanding vision. Other related activities of Mittal Steel include shipping. He is a Director of ICICI Bank Limited and is on the Advisory Board of the Kellogg School of Management in the U. He founded the company in 1976 and has been responsible for the strategic direction and development of its businesses. Following the transaction combining Ispat International and LNM Holdings to form Mittal Steel in December 2004. Mr. and has a son. 1950. Mittal is a member of the Foreign Investment Council in Kazakhstan. entrepreneurship. Xavier’s College in Calcutta where he received a Bachelor of Commerce degree. Aditya Mittal and a daughter. and has over 30 years of experience working in steel and related industries. leadership and success in global steel development from American Metal Market and PaineWeber’s World Steel Dynamics. Company Of Renamed as Caribbean Ispat. Mr. Mittal is an active philanthropist and a member of various trusts. Mittal Steel is the only truly global steel producer in the world with operations on 14 countries. the International Investment Council in South Africa.S. Mittal began his career working in the family’s steelmaking business in India. Mittal Steel is a significant contributor to local community and welfare activities for employees in countries where the Group operates. Mittal has also championed the development of integrated mini-mills and the use of Direct Reduced Iron or “DRI” as a scrap substitute for steelmaking and led the consolidation process of the global steel industry. MITTAL – PROFILE Mr. acquisition and turnaround of steel assets has led to its emergence as one of the world’s fastest growing steel producers. the World Economic Forum’s International Business Council and the International Iron and Steel Institute’s Executive Committee. and graduated from St. Trinidad & Tobago Sibalsa Mexico’s Third Largest Steel Producer. . Mr..

Unimetal Group. Iscor. Steel Ispat International buys America’s fourth largest steelmaker. LNM with Iscor subsequently takes control of Iscor in June 2004. 1998 Inland Company Unimétal ALFASID SIDEX 1999 2001 2002 LNM Holdings acquires SIDEX. Business assistance LNM Holdings signs a business assistance agreement with agreement signed the South African steel producer.1994 1995 Sidbec-Dosco Canada’s number four steel maker is bought from the Government of Quebec and renamed Ispat Sidbec. Renames it Ispat Sidex. Ispat International buys the French company. at an all-in cost of $905 million. from the Czech government. 2003 . an integrated steelworks in Galati. including Trefileurope and SMR. Karmet The Group buys a 5. the largest steel producer in the Czech Republic. being privatized by the Romanian government. Hamburger Stalwerke Germany’s fourth largest producer of wire rod. takes effect in January 2003 and the company is renamed Ispat Nova Hut. Nova Hut LNM Holdings signs an agreement to buy Nova Hut. from Usinor. Ispat Iscor has now been renamed Mittal Steel South Africa. LNM Holdings buys 70 per cent of ALFASID from the Algerian government and renames it Ispat Annaba. renamed Ispat Karmet. The acquisition. renowned for its mini-mill expertise and renamed as Ispat Hamburger Stahlwerke.5 million tons pa blast furnace steel plant in Kazakhstan. Inland Steel Company and renames it Ispat Inland.

The company boasts a capacity of over 6. MDA with Liberian Mittal Steel signs a mining development agreement with . LNM Holdings buys Bosnia’s BH Steel.’ 2005 Acquisition of stake Mittal Steel announces a share purchase agreement to in Hunan Valin acquire 36. it will create the world’s largest steel maker with a stock market worth of around $21 billion and a combined capacity of 70 million tons of steel a year. committing itself to the biggest ever investment in Bosnia by a foreign company.67 per cent of Hunan Valin Steel Tube & Wire. ISG Acquisition The acquisition of ISG is completed and the company is Completed merged with Mittal Steel’s existing US operation. merging its Created western European operations with its central and eastern European operations to form one unified business structure – Mittal Steel Europe. Chairman Lakshmi Mittal declares his intention to make the Group ‘the lowest cost steel producer in every market. 30 per cent in Europe and the remaining 40 per cent split between Asia and Africa. Once the proposed acquisition is completed. Ispat form Mittal Steel. BH Steel Macedonian facilities LNM adds to its downstream activities in the Balkans with from Balkan Steel the acquisition of hot and cold rolling mills in Skopje. The move marks Mittal Steel’s entry into the Chinese steel industry. one of China’s top ten steelmakers with annual capacity of 8. The enlarged Mittal Steel will span the globe with around 30 per cent of its assets in North America. and subsequently re-named Mittal Steel USA.5 million tons a year but is close to bankruptcy at the time of acquisition. and renames it Ispat Polska Stal (IPS).5 billion.2004 Polski Huty Stali LNM Holdings buys a controlling holding in Poland’s leading steel producer. Mittal Steel announces an agreed takeover of International Steel Group of the US in a cash and shares deal worth $4. are renamed Ispat Skopje. At the same time. Creation Of Mittal Steel and Proposed Acquisition Of International Steel. Polskie Huty Stali. LNM Holdings and Ispat International announce their merger . The two mills. Mittal Steel Europe Mittal Steel restructures its European business.5 million tonnes. Macedonia. dormant for two years.

when the Arcelor share was listed on several stock exchanges. by utilizing the profitable assets of Corporacion de la Siderurgia Integral. Operations begin in 1995. Kryvorizhstal is Ukraine’s leading steelmaker with annual steel production of 7. Officially launched on February 19.7 million tonnes and more than one billion tonnes of iron ore resources. Acquisition of Stelco Mittal Canada enters into definitive agreement for the subsidiaries acquisition of Norambar Inc. the Government of Liberia. 2001. The choice of the name Arcelor was announced on December 12. of Kryvorizhstal is acquired for $4. India the State of Jharkhand. 2001. 2002.8 billion following a public auction in Kiev. Transaction completed in February 2006 at a cost of C$30 million ARCELOR Arcelor was created by the merger of Aceralia. and the determination of these three European groups to mobilise their technical. Arbed and Usinor. giving Mittal Steel access to about one billion tonnes of iron ore resources in the west of the country. India. the merger became effective on February 18.Govt. Mittal Steel expects to invest $9 billion establishing mining and steel making operations in the state. Stelfil Ltée and Stelwire Ltd. from Stelco Inc. . and commercial synergies in a joint venture to create a global leader with the ambition of becoming a major player in the steel industry. ACERALIA 1902 : Creation of AHV 1950 : Creation of ENSIDESA 1973 : ENSIDESA (absorption of UNINSA) 1991 : Establishment of CORPORACION de la SIDERURGIA INTEGRAL 1994 : Establishment of CSI Corporacion Siderurgica.. Company subsequently renamed Mittal Steel Kryviy Rih. 1997 : Creation of ACERALIA CORPORACION SIDERURGICA and strategic alliance with the Arbed Group. industrial. Acquisition Kryvorizhstal MOU with Mittal Steel signs a Memorandum of Understanding with Jharkhand.

the origin of which dates back to the Wendel group 1981 : Nationalization of Usinor and Sacilor 1986 : Merger of Usinor and Sacilor 1990 : Sollac absorbed by Usinor 1991 : Ugine absorbed by Sacilor 1994 : Special steels grouped together within the Aster holding company 1995 : Privatization of Usinor-Sacilor 1997 : Usinor-Sacilor becomes Usinor 1998 : Acquisition of Cockerill-Sambre. owner of EKO Stahl 1999 : Re-organization of the Usinor group . which takes over from the Lorraine steel industry 1964 : Creation of Sacilor. Forges et Aciéries de Denain-Anzin 1948 : Creation of Sollac.Majority shareholding in Belgo-Mineira 1999 : Takeover of UCIN in Spain 2000 : Sale of the shareholding in Samitri USINOR 1948: Creation of Usinor.ARBED 1882 : Establishment of the parent company 1886 : Beginning of Thomas steel production in Luxembourg 1911 : Merger of the 3 largest steelmakers in Luxembourg and creation of Arbed 1920 : Creation of TradeARBED 1922 : Creation of Cia Siderurgica Belgo-Mineira in Brazil 1962 : Creation of SIDMAR in Belgium 1985 : Majority shareholding in ALZ through SIDMAR 1992 : Control is taken of the former Maxhütte (ex-GDR) and establishment of Stahlwerk Thüringen 1993 : Organization of the Group in business sectors 1993/97 : Conversion to electric steel production in Luxembourg 1995 : Majority shareholding in Klöckner Stahl. now STAHLwerke BREMEN 1997 : Strategic partnership with ACERALIA (formerly CSI) in Spain 1998 : Integration of ARISTRAIN in Spain . which takes over from Forges et Aciéries du Nord et de l'Est and Hauts Fourneaux.

BOARD OF DIRECTORS Joseph Kinsch José Ramón Álvarez Rendueles Chairman of the Board of Directors Vice-Chairman of the Board of Directors H. to EURO 28. . at EURO 27. Prince Guillaume of Luxembourg Director John Castegnaro Director Jean-Yves Durance Director Noël Forgeard Director Jean-Pierre Hansen Director Ulrich Hartmann Director Corporación JMAC BV represented by Antoine Director Spillmann Hedwig De Koker Director Manuel Fernández López Director Michel Marti Director Daniel Melin Director Edmond Pachura Director Francisco Javier de la Riva Garriga Director Sergio Silva de Freitas Director Georges Schmit Director Fernand Wagner Director THE INITIAL BID AND THE REJECTION January 14: LN Mittal talked to Arcelor CEO Guy Dolle about the possibility of Mittal Steel acquiring Arcelor. The market sent Arcelor's Paris-listed shares soaring 29%.R. Arcelor has plants in France.H.6. Mittal said that Arcelor Chief Executive Guy Dolle wasn't positive about the approach. Mittal shares listed in Amsterdam closed up 6.2%. but he was confident Arcelor's shareholders will back the bid. Guy Dolle categorically turns Mittal down. January 29: Arcelor rejected the offer and the French government said it has "great concerns" about the merger. January 27: Mittal Steel launches a formal takeover bid for $22 billion dollars. Steel shares around the world also rose.63.

Guy Dolle. HOSTILITY AND RACISM There was a lot of hostility by Arcelor’s Management Board as they felt that Mittal Steel was resorting to underhanded techniques to merge with them. Mittal would become the leader in providing steel to the automotive industry in Europe and the U.' adding that Mittal and his family were often portrayed as aliens -'the Indians' -. Arcelor is primarily a European producer while Mittal is scattered around the globe. INCREASING OFFERS AND PRESSURE April 19: Mittal Chairman and Chief Executive Lakshmi Mittal calls Arcelor Chairman Joseph Kinsch to ask for "friendly discussions'' about revising his proposal in return for support from management. .A tie-up between the two companies would create a company with $70 billion a year in revenue and the most global production capacity in the industry. May 4: Kinsch says the offer is "wholly inadequate'' and Arcelor has significant concerns about the real value of Mittal shares.rather than as global entrepreneurs. The European Union said it was against racial discrimination and the issue would be treated only on commercial considerations. and would lead in the North American Free Trade Area in appliances and packaging. In London. With the European Commission being accused of protectionism and racism. a columnist for The Guardian spoke of how the bid unleashed a new wave of 'economic patriotism. The next largest producers after Mittal and Arcelor are Nippon Steel Corp and Posco. Arcelor's CEO. offered a laundry list of ills in Mittal Steel because of which the merger should not take place. and common man. There was a lot of controversy where racist remarks were made against LN Mittal. other leaders.. The bid stirred up passions amongst politicians.S. They dismissed the idea of a merger with a "company of Indians". April 28: Mittal tells Kinsch he is ready to make "significant corporate governance changes'' and revise the offer.

. but mandates its board to explore possible improvements to the Mittal offer at a later date. June 12: Arcelor rejects Mittal revised bid and recommends shareholders accept deal with Severstal. but is prepared to make changes related to corporate governance. June 9: Arcelor confirms it has held talks with Mittal on the term of its bid. Arcelor toughens its stance. June 20: In a bid to woo Arcelor. May 18: Mittal formally launches its offer. behind Evraz Group.5 billion to buy back almost a quarter of its shares. announcing plan to spend up to $9. SEVERSTAL – A NEW PLAYER Severstal is a Russian company mainly operating in the steel industry. although profits suffer due to higher costs of raw materials. saying that majority owner Mr Alexei Mordashov would settle for 25 per cent of the new group rather than the initially proposed 32.May 9: Mittal Steel says it is ready to revise the offer and make corporate governance changes "in the event of a recommended deal. June 6: The European Commission approved the Mittal-Arcelor merger.4 billion for 32 percent of Arcelor. The company is owned by Alexei Mordashov. Severstal revised the terms of its merger proposal.90 billion and says it would reduce the Mittal family's stake in the company.'' May 10: Arcelor Chief Executive Guy Dolle describes as "insufficient''.3 per cent and raised its offer by about 2 billion. As such it is the second largest steel company in Russia. centered in the northern city of Cherepovets. May 12: Both companies announce better-than-expected results. Mittal says it won't budge on price. Mittal's offer to revise its bid. Arcelor says the revised offer still undervalues the company and urges shareholders to support the Severstal merger instead. May 26: Arcelor announces a deal with Severstal that will give it a controlling stake in Russia's steelmaker and $16. May 11: Arcelor says it has filed a lawsuit in the United States against Mittal for copying a type of steel for the auto industry. June 2: European Union antitrust regulators approve Mittal bid on condition the new combined steel giant sell off some of its facilities if the bid succeeds. bringing it up to $32. May 19: Mittal raises its offer by 34 percent.

which was approved by the Board of Arcelor on June 25 after a five-month long battle. Luxembourg and Belgium suspend Arcelor shares. June 21: Market regulators in France. 57." Kinsch said.AGREEMENT TO MERGER AND FINAL MERGER June 19: Arcelor cancels shareholder meeting on share buyback amid growing shareholder opposition. June 24: Talks on between Mittal Steel and Arcelor June 25: Arcelor's board agrees to sweetened bid from Mittal worth about $32. accounting for about 10% of the world market." "We have created in five months more than EURO 12 billion in value.3 billion.20. Arcelor chairman Joseph Kinsch told shareholders that the long fight with Mittal was worth it.000 employees producing about 116 million tonnes of steel annually.3 billion offer. In the process. an overwhelming majority of shareholders of the Luxembourg-based firm vote down a merger proposal from Russia's Severstal. Arcelor had recommended acceptance of share and cash from Mittal Steel valuing at about $32. saying they want more clarity on the state of talks with Mittal and Severstal. they accept Mittal Steel's $32. Spain. SNAPSHOT VIEW OF THE MERGER TRANSACTION HIGHLIGHTS • Arcelor Mittal: A merger of equals with shared management for successful integration – Ownership of 50.5% for Arcelor investors and 49.3 billion. June 30: Paving the way for a merger between Arcelor and Mittal Steel. which creates a group with 3. saying the India-born steel tycoon L N Mittal and the markets had finally recognised Arcelor's "true value.5% for Mittal Steel investors • Recommended transformational merger of the world’s two largest steel companies with unrivalled global footprint .95% per cent of Arcelor shareholders voted against the Severstal offer.

stabilize earnings and increase shareholder returns • Annual synergies increased by 60% to €1.3bn (US$1. as well as leading position in North America Enjoy unparalleled access to new high-growth markets: Central and Eastern Europe. utilising existing leadership in high-end products in mature economies Accelerate growth in key emerging markets such as India and China Achieve cost leadership and operational excellence across product range Maintain high level of vertical integration to hedge against raw materials price fluctuations Focus on people management and social responsibility . spurring consolidation in a fragmented industry Creation of European-based global champion best positioned to capture new market opportunities New entity will capitalise on strong European heritage and presence. Africa. China and Latin America Company will be able to service global customers with broad and deep product offering High level of direct access to raw materials making group more profitable and less cyclical than most of its peers THE COMBINED STRATEGY • • • • • • • • Consolidate regional high-end leadership into global customer platform Achieve industrial excellence through state of the art assets sustained by sound capital expenditure and best in class R&D Realise commercial leadership through strong distribution channels Capture growth in BRICET countries.6bn) THE COMBINED VISION • • • • • • Combination driven by simple and compelling industrial logic.• The undisputed industry leader • Creation of company with unprecedented scale and diversification to manage cyclicality.

Increased free float and liquidity From Arcelor Point Of View • • • • • • Mittal Company will accomplish Arcelor’s stated plan in the most efficient way. Mr Mittal to be President o Upon Mr Kinsch’s retirement. Successful distribution business in Europe. Low Cost slab manufacturing in Brazil that can be expanded for export to Europe and North America. Access to raw materials and upstream integration. Arcelor becomes a global player. Mittal Co. shareholders to elect Board of Directors Board Committees • • .A WIN-WIN STAKEHOLDERS From Mittal Point Of View • • • • • TRANSACTION FOR ALL Merger would take consolidation to a new horizon. profitable assets and local operating expertise in numerous emerging markets. Access to very low cost slab potential in Ukraine to serve West Europe. with strong R&D capabilities. Operations in high-growth economies with low-cost. Leadership position in high-end segments in North vote regardless of holding period Composition of initial Board of Directors o Mr Kinsch to be Chairman. Mr Mittal becomes Chairman o The Board of Directors will be composed of 18 members. all non executive (majority independent) • 6 members from Arcelor • 6 members from Mittal Steel • 3 current representatives of existing Arcelor major shareholders • 3 employee representatives o After expiry of three year period. FINER DETAILS OF MERGER • Shareholder voting rights All shares with identical voting and economic rights: One share . to have leadership position in high end segments in Western Europe with strong R&D capabilities.

CEO to be proposed by the Chairman o 3 Mittal Steel executives KEY CONTRACT TERMS • Other offers Arcelor has agreed they will accept no other offer for Arcelor shares unless it is a superior offer for the entire share capital of Arcelor o No break-up fee required in contract o If shares are issued under the Strategic Alliance Agreement. including the Chairman. CEE..consent of a majority of the independent directors or in case of passive crossing of such thresholds • Lock up Mittal family has agreed to a 5-year lock-up. Africa • Cross selling through enlarged and enhanced product portfolio • Optimisation of order book for cross product flows and logistical savings Manufacturing and process optimization (US$470m) • Benchmarking and best practice alignment across all operating assets • Optimisation of utilisation of assets through selected mill product specialisation (e. Exceptions in certain circumstances . CIS.. productivity gains with better sequencing rates.g. subject to certain exceptions.g. corporate governance rules and certain other conditions terminate • Standstill Mittal family has agreed to a standstill at 45% of share capital. including the right to dispose of up to 5% of the share capital after the 2nd year INCREASED IDENTIFIED SYNERGIES Marketing and trading (US$570m) • Accelerated growth of distribution in developing regions e.o an Audit Committee composed solely of independent directors o an Appointments and Remuneration Committee composed of 4 members. fewer changeovers) • Logistical and mill optimisation through transfers of semi finished products . President and 2 independent directors • Composition of Management Board o The Management Board will be comprised of 7 executive members o 4 current Arcelor executives.

consulting services • Duplication in commercial network avoided UNMATCHED FINANCIAL STRENGTH Arcelor Mittal pro-forma key financials Revenue 2005 EBITDA 2005 Margin (%) Net Debt Q1-06 * Gearing Net Debt / EBITDA Cash flow from operations 2005 Capex 2005 Free cash flow 2005 Arcelor Mittal (US$bn) US$77.7x US$9..Purchasing (US$500m) • Scale effects on standardisation of procurement contracts • Optimisation and efficiencies from maintenance services.4bn 18.6% US$24.1bn US$5.g.6bn FINANCIAL POLICY FOR SUSTAINABLE SHAREHOLDER VALUE CREATION • • • • • Efficient capital structure and return of excess cash to shareholders 30% dividend payout ratio over the cycle Unparalleled financial flexibility to pursue internal and external growth opportunities Commitment to investment grade credit rating Maintain high returns on capital .4bn US$14. subcontracting.7bn US$4.0bn 56% 1. spare parts and consumables • Logistics savings on optimisation of raw material flows SGA (US$60m) • IT synergies • Reduction in external contracts e.

a company larger than the next 3 largest steel companies combined. According to the press releases issued by the companies. Eastern Europe and CIS countries. 40. Logically his next stop would be Asia. October 2005 saw the first battle between . In 2005. he has shown virtually no interest in the Indian market.7%. Some analysts say that Mittal had to pay a much higher price than was actually required to merge with Arcelor.000 crore. Total global consumption still managed to rise 5.4% fall in consumption. Mittal is the number 1 steel producer in the world by shipments.3%. conquering the world markets one by one and now. Africa. and the fall in EU was 11.CONCLUSION The largest steel company in the world is created. LN Mittal’s home country. Arcelor is the number 1 steel producer in the world by revenue. He also did not get the best deal that he could have. • Both companies have been leaders in steel industry consolidation • Consolidation is contributing to increased discipline by producers • Combination of top two players takes consolidation to a new level Arcelor is primarily a European player. he has shown interest in investing large amounts of money in Jharkhand and Orissa. almost double the world's second largest producer .Arcelor. thanks to a massive 25. they form • World’s number 1 steel company • Leading positions in 5 major markets • 61 plants • 27 countries • Numerous international partnerships and Joint Ventures • Opportunity to grow in China and India The new company is number 1 in North America. Recently. Till now. Western Europe. Together. amounting to about Rs. only India is left. Mittal Steel is the world's largest steel producer at 70 million tonnes a year. while Mittal has interests all around the world. the US witnessed a 15. “Consolidation creates value in the steel industry”. South America.9% rise in demand in China and an impressive 7-8% demand in India. Why has LN Mittal not concentrated on India so far? One can speculate that he was going at it step by step. as his controlling stake in the newly formed Arcelor-Mittal is lower than what was originally aimed for. India. A very vital omission from this list is Asia and more importantly. as China and India are the fastest growing steel consumption markets.

the Mittal-Arcelor combine would have an even larger share of the global steel market and would be able to get a better grip over steel pricing. Severstal had to be paid legal fees as they had been completely cut out of the deal. both bid for Ukraine's largest steel mill . • Creating the undisputed leading global steel company • Growth and value creation opportunities maximised through unique global platform • Step change in steel industry consolidation • Significant synergy potential • Financial strength and strategic flexibility reinforced • Leadership in R&D/product development • Significant free float and liquidity • Re-rating potential • Positive for all stakeholders In the end.the big two. Why was the deal so important for LN Mittal? In a snapshot. Reports suggest that it was this bidding war with Arcelor that gave L N Mittal's son Aditya. at least. the immediate future. . the idea of taking over Arcelor.Kryvorizhstal in an open televised bid. It has been a win-win transaction for both parties. His reason was that it would eliminate any future messy battles.Mittal and Arcelor. Now Severstal has threatened a legal battle and a fresh bid. If that happens. a European company had to finally give in and merge with “a company of Indians”. will not be glinting enough to Mittal’s advantage. much more than the $3 billion at what analysts had valued Kryvorizhstal. the CFO of Mittal Steel.8 billion deal. Mittal beat Arcelor to the $4.

htm http://www.indiatimes.html %2Feitb24%2Feconomia&idioma=en http://www.REFERENCES http://www.htm Outlook Magazine – 10th July 2006 – Pages 46-48 ex=1308974400&en=8abefaa34217bd6f&ei=5088&partner=rssnyt&emc=rss http://economictimes.aspx?pageID=664 http://www.htm http://www.php?lang=en&page=77 http://sg.rediff.htm

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