The chief executive of Luxembourg-based Arcelor SA said the company would consider Mittal Steel's unsolicited takeover bid if the offer is large enough and made in cash.
Guy Dolle said at a steel industry exposition in Cleveland on Wednesday that Arcelor's opposition to the Mittal bid is not absolute, reiterating what Arcelor Chairman Joseph Kinsch told shareholders on Friday in Europe.
Arcelor wants the offer in cash to eliminate uncertainty, Dolle said.
"What is the value of a Mittal Steel share? That is the question," he said. "Everything has a price. In the end, the shareholders decide if they would want to buy shares in the new company or not."
Mittal Steel, based in the Netherlands, is headed by Lakshmi Mittal, one of the world's richest men. Mittal Steel is the world's largest steel company and Arcelor is its closest rival.
Arcelor asked shareholders on January 29 not to tender their shares in the hostile bid Mittal Steel announced two days earlier, which valued Arcelor shares at euro 28.21 each.
The announced offer was one-fourth cash and the rest in stock.
Mittal Steel said the deal would create the world's first 100 million ton-plus steel producer, with a market capitalisation of $40 billion.
{{/usCountry}}Mittal Steel said the deal would create the world's first 100 million ton-plus steel producer, with a market capitalisation of $40 billion.
{{/usCountry}}The Luxembourg government, the largest shareholder in Arcelor, has voiced concerns about the merger, citing Mittal Steel's failure to consult with Luxembourg or Arcelor's management.