Saturday, May 27, 2006

Arcelor Merges with Severstal

Guardian reports: Arcelor merges with Russian steel group in final snub to Mittal's €25bn bid

Arcelor, the pan-European steel group, yesterday torpedoed Mittal's latest hostile takeover bid by buying Russia's Severstal in an agreed 13bn euro (£8.8bn) deal designed to create an "unrivalled global champion" out of reach of its Indian-owned predator. The friendly transaction will see Alexei Mordashov, who owns 89% of Severstal, take 32% of the new group and, potentially, become its chief executive and even owner within a few years.

......was personally approved by President Vladimir Putin in an effort to persuade the increasingly sceptical west that Russia is "an open market and keen on globalisation,"

But, but, if Mittal can manage the Gobble up the new entity, it would be Mittal who would have the laugh. I just hope that Mittal might do just that:-) and of course Alexei Mordashov, the chairman of Severstal.
Mittaljee go for it.....

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