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Arcelor rejects the 25 billion euros Mittal Steel bid
Steel giant Arcelor has officially rejected the 25 billion euros unsolicited acquisition bid announced by Mittal Steel a couple of months ago. However, they have agreed to meet the company officials to review its proposal to further improve the offer.
The Arcelor board was unanimous in the decision to reject this bid as they claimed that it failed to value the company properly. They have also asked the shareholders in the company to support their proposed merger with the Russian steel group Severstal.
Arcelor board added that the offer from Severstal was a much attractive alternative from a strategic, financial and social point of view. It also said that the fact Mittal Steel went on to improve their initial offer confirms that the company has been undervaluing the worth of the Arcelor.
Mittal Steel however has reacted by saying that they have not made any improved offer nor had any intention to do so. A statement from the company said: “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.”