Mittal begins merger talks with Arcelor

ALMATY: Mittal Steel said on Friday it had started discussions with Arcelor on its proposed takeover of the rival company.

"We have started discussions with Arcelor. Yesterday was the first day," Malay Mukherjee, Mittal's chief operating officer, told reporters during a trip to Almaty.

"Right from the very beginning we said we were willing to talk." Mittal's hopes of carrying out its 21.5 billion euro ($27.6 billion) bid lie largely in enough Arcelor shareholders rejecting an alternative in the form of a deal with Russian steel company Severstal.

"The offer is very attractive even if you look at it in terms of the present stock prices," said Mukherjee. Asked why he believed Mittal's offer was more attractive than a deal with Severstal, he said: "We are definitely more global, our assets are more balanced. We are in all different markets and countries. Severstal is still limited to Russia and has a very small presence in the USA.."

"We are convinced that our offer makes the best value for Arcelor shareholders," he added.