Arcelor keeps contact with Severstal: L'bourg

Severstal had agreed a merger deal with Arcelor in May that would have seen Severstal's chief Alexei Mordashov take a 32-per cent stake in Arcelor.

The European steel group Arcelor kept in contact with Severstal despite earlier breaking its deal with the Russian company to merge with Mittal Steel, Luxembourg Foreign Minister Jean Asselborn has told Russia's RIA-Novosti news agency.

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"As far as I know, contacts and ties are being kept up," Asselborn was quoted as saying late on Wednesday, voicing hope that "they will find common interests in the economic sphere."

"This is very interesting for us -- we want to cooperate with the Russian side," Asselborn said, refusing to elaborate on the details.

Severstal had agreed a merger deal with Arcelor in May that would have seen Severstal's chief Alexei Mordashov take a 32-per cent stake in Arcelor, but Arcelor management then accepted an alternative offer to merge with rival Mittal Steel under pressure from its shareholders.