Mittal Steel confirmed Wednesday it has no plans to raise its roughly 18.6-billion-euro offer for European rival Arcelor, even after Arcelor moved to protect shareholder loyalty by announcing 5 billion euros in buybacks and special dividends.
Mittal's European chief Roeland Baan argued the move actually weakened Arcelor, saying the payouts drain cash from the company and reduce its balance-sheet value.
Mittal, a Netherlands-based company of Indian origin, first signaled its takeover intentions on 27 January. The formal offer was expected within days of this report. Arcelor's leadership, including chief executive Guy Dolle, had been meeting shareholders in Europe and the United States since late February to build resistance to the bid.
The governments of France, Luxembourg, and Spain all voiced skepticism about the deal, citing concerns over industrial rationale and potential job losses. Mittal has maintained that no layoffs are planned.
Baan pointed to rising share prices at both companies as evidence of market approval, saying shareholders had effectively already endorsed the deal's logic through their trading activity.
Historical summary. TurkishPress restated this wire report, first published in April 2006, in its own words.