Mittal shares gain 26% since word of Tata-Corus deal

PARIS: Mittal Steel shares slipped here on Wednesday on profit taking but have surged 26 percent since an announcement three weeks ago of merger talks between fellow producers Tata of India and the Anglo-Dutch group Corus.

Mittal was down 0.09 percent in mid-morning trading in Paris at 33.87 euros on an overall market that was 0.21 percent stronger.

But the Mittal share price has soared since October 4 following the revelation in Indian press reports of advanced talks between Tata and Corus.

On Friday, Corus directors recommended acceptance of an acquisition offer from Tata of 7.62 billion euros (9.6 billion dollars).

Market analysts said Mittal, which has Indian origins but is based in the Netherlands, has also been boosted by healthy economies of scale stemming from its acquisition of European group Arcelor in June.

Analysts at Morgan Stanley, in a note to clients, said increased consolidation in the steel sector and more efficient production are supporting the Mittal share price.

Following the Tata-Corus tie-up, the number two and three steelmakers, Nippon Steel of Japan and Posco of South Korea, said they were to strengthen their strategic alliance.