Unfazed by stiff opposition for his takeover bid, NRI steel tycoon Lakshmi Mittal on Thursday made his formal offer for acquiring the rival steel company Arcelor.
LONDON: Unfazed by stiff opposition for his takeover bid, NRI steel tycoon Lakshmi Mittal on Thursday made his formal offer for acquiring the rival steel company Arcelor, which provides a chance for shareholders to determine the Luxembourg-based company's future.
Mittal Steel is offering about $23.2 billion cash and its own shares for Arcelor, having received regulatory clearance for the bid from watchdogs in Belgium, France and Luxembourg earlier this week.
The offer is open until June 29. Regulators have said that the result will be announced on July 13.
The offer for Arcelor opened in Luxembourg, France and Belgium. It is expected to open in Spain and the United States shortly, a Mittal Steel release said.
If successful, Lakshmi Mittal will create a global giant worth about $40 billion, employing 320,000 people and producing around 10 per cent of the world's steel.
Arcelor Board has rejected the offer and has urged shareholders to preserve the company's independence. It has promised to increase 2005 dividend and a 5 billion euro share buyback at a price above the market level in a bid to convince them to reject the bid.
Commenting on the offer Lakshmi Mittal, Chairman and CEO of the Company said: "Since our offer was first announced the market has demonstrated that it likes the strategy of the deal through the considerable value created".
"We have always said that it is the shareholders who should decide on this transaction and we are pleased that now that the offer is open they will have ability to do so."
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