Arcelor’s shareholders are more confident that Mittal will increase its bid leading to a friendly merger deal between the two steelmakers.
That is the opinion of fund managers after Arcelor’s board decided to cancel this week’s
extraordinary general meeting.
At the meeting several major shareholders were reportedly planning to vote against Arcelor’s defence plan to buy back a large block of its shares as part of its planned merger with Russia’s Severstal.
Arcelor said it had put the meeting on hold in light of its current discussions with Mittal.
Lakshmi Mittal said that he is now increasingly confident he can convince Arcelor shareholders they should back his offer and pressure management into dropping its resistance.
The company issued a more cautious statement confirming it is still talking with Arcelor about reaching an agreed deal, but the outcome of these discussions is “uncertain.”
However, analysts said the fact that Arcelor shares were trading higher than Mittal’s bid price on Tuesday means that the market anticipates the offer will be raised.