European chiefs concerned about Mittal steel bid
The steel giant owned by British-based tycoon Lakshmi Mittal was today facing a battle to convince European powerbrokers of the merits of its £12.7bn (€18.5bn) bid for Arcelor.
Leaders in Luxembourg and Belgium have already raised concerns about the hostile bid, which caught European markets by surprise on Friday and was rejected by Arcelor last night.
The budget minister and economic minister of Luxembourg have issued a joint statement raising their concerns about “the apparent hostile nature of the bid” and the lack of guarantees over employment and investment in the principality.
Winning their support is important to Mittal as Luxembourg holds 5.6% of shares in Arcelor, which is the principality’s largest employer with 6,000 workers.
The government of Belgium said it would seek more commitments before it agreed to any sale of its 2.4% stake in Arcelor, while French finance minister Thierry Breton said he wanted further details about the bid.
Arcelor was in no doubt that the approach from Mittal was unfriendly and said the companies did “not share the strategic vision, business model and values”.
It warned of “severe consequences” that the proposal could have on its employees and customers, urging shareholders not to sell out to Mittal.
