Mittal expects Arcelor to come to talks next week
Mittal dramatically raised the stakes in the battle for control of Arcelor by upping his bid to euros 25.8 billion.india Updated: May 25, 2006 18:47 IST
NRI steel tycoon Lakshmi Mittal, who recently raised his bid for control of Arcelor, is optimistic that the management of the Luxembourg-based firm will come to the negotiating table next week, once they have had a chance to look at his business plan.
Mittal dramatically raised the stakes in the battle for control of Arcelor on Friday by upping his bid to euros 25.8 billion, increasing the cash element and offering to relinquish family control over the merged company.
"I'm not really thinking beyond. I'm confident that this combination will succeed," Mittal told 'The Times' when asked what would happen if he fails to win control of Arcelor.
"We are committed to this and since we have announced this transaction, steel industry valuations have gone up. The steel industry is being re-rated because people are expecting this consolidation to go through," said the richest Asian in the UK.
Mittal said people could see the "benefit" of the deal.
"It is very important for the industry and for share- holders of Mittal and Arcelor that this transaction succeeds," the daily quoted Mittal as saying.
It took 16 weeks to get the offer document out after four separate market regulators gave a green signal to paperwork.
Mittal is still upbeat with investors, whom both he and son Aditya will meet this week for a roadshow, reacting well.
"The general feeling is very positive. They really like the bump up in this offer. They understand it is a full-price, compelling offer which they can't refuse. It is basically a 70 per cent premium over the highest price Arcelor shares achieved before this transaction was announced," he said.