European steelmaker Arcelor is worth five to six times expected EBITDA and that is much more than the value of the unsolicited planned bid by Mittal Steel, its chief executive said.
In an interview published on Tuesday in Le Figaro, Guy Dolle reiterated that the Mittal share and cash bid, currently worth some 20.5 billion euros, was far less than the normal market multiples that would put the value of Arcelor at 33.7-40.7 billion euros.
"(The value of Arcelor) is much higher that the Mittal proposal. We have announced a target EBITDA (earnings before interest, tax, depreciation and amortisation) of seven billion euros and you have to apply the current market multiples for our industry, which are between five and six, and deduct our debt." Dolle said.
"The difference is considerable," he added.
Dolle was speaking with the paper on Saturday, after Friday's annual general meeting in which Chairman Joseph Kinsch was re-elected with a comfortable margin despite opposition by some institutional investors unhappy with the way Arcelor has transfered ownership of Canadian unit Dofasco to a Dutch foundation without prior investor consultation.