'Mittal's Brazilian takeover to cost $3 bn more'
The regulator, CVM, has upheld an earlier ruling requiring Mittal Steel to buy out minority shareholders.india Updated: Sep 27, 2006 17:40 IST
Mittal Steel may have to shell out an additional $3.3 billion for takeover of Arcelor after Brazilian regulators sought better terms for shareholders of the Latin American subsidiary, Arcelor Brazil.
The regulator, CVM, has upheld an earlier ruling requiring Mittal Steel to buy out minority shareholders on terms equal or close to those paid to stockholders of the Luxembourg-based mother company, The Daily Telegraph reported on Wednesday.
The price, to be set by an outside arbitrator, could reflect the 82 per cent premium ultimately paid by Mittal Steel after its long battle for control of Arcelor.
The $38 billion merger has created the world's biggest steel company, with 10 per cent of global production and 320,000 employees.
Lakshmi Mittal, the group's Indian-born president, said on Tuesday that the merger was going even better than expected, despite the need to mesh two unfamiliar cultures.