Severstal warns of spoiling Mittal's party
The Russian company said it would improve its bid for Arcelor, whose board dumped it for a tie-up with Mittal Steel.india Updated: Jun 27, 2006 03:08 IST
In a fresh development that could potentially stir up trouble for the mega Arcelor-Mittal deal, Russia's Severstal has announced it would improve its bid for the Luxembourg-based steel giant, whose board on Sunday dumped it for a tie-up with Mittal.
The slighted former suitor, with whom Arcelor had entered into a strategic tie-up on May 26, was cut up that its representatives were not invited to attend Sunday's board meeting.
Severstal said that it had an agreement to merge that ties up to the Board of Arcelor and was surprised that no discussion was held with them over the revised offer (from Mittal) and no opportunity given to respond.
An agency report quoted the Russian-firm as saying that in the light of legal agreement it has with Arcelor, it was studying "all its options".
Severstal said that it was going to improve its bid ahead of the June 30 meeting of Arcelor shareholders.
According to a Russian daily Izvestia, Alexei Mordashov, who controls Severstal, has forged an alliance with Roman Abramovich, the owner of UK-based football club Chelsea to offer a higher price for Arcelor shares.
ABN AMRO Bank has also reportedly offered the required money to the Russian steel-maker.
One of the business daily Vedomosti has pointed out that Mordashov's alliance with Abramovich would be his last chance to woo Arcelor's shareholders.