Mittal launches bid for remaining shares in Brazilian unit

PARIS: Global steel giant Arcelor Mittal on Monday said it had launched an offer for the minority shares in Arcelor Brazil priced at 21.10 euros a share, adding another 4.5 billion euros to the value of Mittal Steel's acquisition last year of European group Arcelor.

The results of its bid, equivalent to 53.89 Brazilian reals or 28 dollars, will be announced later in the day after the close of trading on the Brazilian stock market, Arcelor Mittal said.

The group is seeking to acquire 213.7 million minority shares, or 37 per cent of the capital of Arcelor Brazil.

At the offered price, the operation will add about 4.5 billion euros to the 27 billion euros already spent by Mittal Steel to buy Arcelor in June 2006.

The Brazilian market regulator ordered Arcelor Mittal to bid for the minority shares in September, a step it had been refusing to take for months.

Arcelor Mittal had insisted the purchase was not necessary on grounds that with the acquisition of Arcelor there had been no change of control in the capital of Arcelor Brazil.

The steel giant complied with the decision but its initial offer last October was judged too low and the group was ordered by the regulator to raise its bid, which it did in early April.