Date:31/05/2006 URL: http://www.thehindu.com/2006/05/31/stories/2006053106191500.htm

Business

Mittal seeks 40 p.c. stake in Arcelor

PARIS: The head of Russian steel group Severstal, Alexei Mordachov, said on Tuesday that he could not immediately afford to increase his planned stake in Arcelor above 38 per cent.

Meanwhile, Mittal Steel, bidding to buy Arcelor, said it would be prepared to end up with 40 per cent of the Arcelor-Severstal entity.

Severstal and Arcelor, a European group, have agreed that Severstal will contribute all of its assets, plus $1.6 billioin in cash, in return for 32 per cent of Arcelor, rising to 38 per cent once Arcelor has bought back and cancelled some shares.

The Managing Director of Mittal Steel Europe, Roeland Baan, told the International Herald Tribune on Tuesday that Mittal Steel intended to press on with its bid if Arcelor and Severstal went ahead with their plan.