Monday, June 26, 2006

Arcelor-Mittal deal confirmed

Arcelor-Mittal deal confirmed: "Luxembourg Minister has confirmed the Arcelor-Mittal deal, ending a five-month hostile bidding war to forge the world's largest steel firm. Mittal has promised that Luxembourg will be the headquarters and the majority of new board of directors will have Arcelor representatives. According to sources, LN Mittal's stake will come down to 45 per cent in the new firm. He will be co-chairman with Joseph Kinsch. Guy Dolle may be retained as CEO.

Mittal and Arcelor will retain Dofasco and Arcelor will have to pay a fine of 130 million euros to Severstal for breaching contract. The board has decided that the new company will be called Arcelor Mittal."

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