Arcelor says Mittal Steel bid is hostile

Luxembourg-based steelmaker Arcelor SA said on Sunday that a takeover bid by rival Mittal Steel Compnay Owned by Indian origin steel tycoon Lakshmi Mittal was hostile.

Luxembourg-based steelmaker Arcelor SA said on Sunday that a takeover bid by rival Mittal Steel Compnay Owned by Indian origin steel tycoon Lakshmi Mittal was hostile and that the company's directors will meet shortly to take a position on the offer.

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"Arcelor underlines the hostile character of this move that takes place without prior discussions or consultations between both companies," the company said in a statement.

Mittal, the world's largest steelmaker, announced an euro18.6 billion ($22.8 billion) offer for its nearest rival today.

Shares in Arcelor surged 33 per cent on the news to euro29.66 (US$36.25).

"Arcelor's board of directors will meet shortly to take position on this offer," the company said.

Mittal said the deal, which values Arcelor shares at euro28.21 ($24.50) each, would create the world's first 100 million ton-plus steel producer with a market capitalization of $40 billion (euro32.7 billion).