Mittal Steel is launching its hostile take-over bid for rival Arcelor following an acrimonious four-month battle between the world’s two steel giants. The move comes after regulators Belgium, France, Spain and Luxembourg gave the green light on Wednesday. Mittal, the world’s largest steel group by volume, is offering a mix of cash and equity during a period extending until June 29.
Arcelor, the world’s largest steel company in terms of revenue, has urged shareholders to preserve its independence – it has promised an increased 2005 dividend and a 5 billion-euro share buyback at a price above the market level in a bid to convince them. If successful, Mittal will create a global giant worth more than 30 billion euros, employing 320,000 people and producing around 10 percent of the world’s steel.