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Mittal not to improve offer for Arcelor takeover

Mittal Steel on Monday said it had not made any improved offer nor has any intention to do so.

india Updated: Jun 12, 2006 20:19 IST

Soon after rejection of its 25 billion euro bid to acquire rival steel giant Arcelor, Mittal Steel on Monday said it had not made any improved offer nor has any intention to do so.

"Mittal Steel has not made any proposal to improve the financial terms of its offer and has no intention to do so. We have made a very compelling offer to shareholders offering a 70 per cent premium to the pre-offer all-time high share price of Arcelor," a statement from Mittal, the world's largest steel maker, said.

The statement follows one issued by Arcelor, after its Board rejected the unsolicited takeover bid, that Mittal had indicated that it was prepared to improve its offer.

Raising doubts over Arcelor's statement that the transaction for Russian steel group Severstal valued Arcelor at 44 Euro per share, Mittal Steel said that this was without market substantiation.

"Mittal Steel would like to reaffirm that its proposal to further improve the offer in the context of a recommended transaction relates only to certain corporate governance initiatives designed to preserve and promote the Arcelor model," the statement said.

Earlier in the day, Arcelor had said in its statement that its Board "unanimously" rejected Mittal's offer, saying it was "inadequate as it continues to undervalue Arcelor."

While asking its shareholders to support the Severstal transaction, Arcelor Board, however, mandated the group management board to meet with Mittal Steel in order to review its proposal to further improve its offer.

First Published: Jun 12, 2006 19:57 IST