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Arcelor rejects Mittal's takeover bid



London, January 30, 2006
PTI

In a major set-back to Mittal Steel, global number one owned by NRI Lakshmi Mittal, the board of directors of the world's second biggest steel group Arcelor today unanimously rejected Mittal's USD 22.8 billion "unsolicited" proposal for its takeover.

In a statement issued after an extraordinary board meeting in Luxembourg, Arcelor said "after a thorough review and analysis of the elements at its disposal, the board has swiftly concluded that Arcelor and Mittal Steel do not share the same strategic vision, business model and values."

The board then expressed its concern regarding the severe consequences that Mittal Steel's proposal could have on the group, its shareholders, employees and customers.

"The board of directors has resolved that it unanimously rejects Mittal Steel's unsolicited proposal which it considers hostile," the statement said.

The Luxembourg-based Arcelor asked shareholders not to tender their shares in the offer, which values them at USD 24.50 each. Mittal, the world's No. 1 steel company, launched a takeover bid for its closest rival on Friday.

Mittal said the deal would create the world's first 100 million ton-plus steel producer, with a market capitalization of USD 40 billion. It anticipated annual synergies of USD 1 billion.

The Arcelor board said it believed its current strategy offered the best guarantee of value creation for its shareholders. The meeting was presided over by Arcelor Chairman Joseph Kinsch. PTI HSR KSM 01300119 DEL


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