Luxembourg backs Mittal takeover

[gary4gar]

Mittal Steel's takeover of Arcelor has won support from the Luxembourg government, which owns 5.6% of Arcelor.

The Grand Duchy of Luxembourg, where Arcelor has its HQ, has dropped its previous opposition to the deal, and wants to own shares in the new group.
Meanwhile, a group of shareholders has dropped court action to postpone an Arcelor shareholder meeting over a plan to merge with Russia's Severstal.
A vote on that proposed deal will now take place on 30 June.
The meeting is going ahead after shareholder group ADAM, representing minority investors in Arcelor, said it would drop its request to postpone the gathering.
"It is time to finish with all this confusion," the group said.
Legally binding
Meanwhile, Helene Zaleski, a board member of Carlo Tassara International, which holds 7.8% of Arcelor shares, told the Reuters news agency that the firm would vote against the Severstal proposal.
Arcelor had agreed a merger with Severstal to fend off an unsolicited bid from Mittal, but has subsequently accepted an improved 24.6bn euros ($31bn, £17bn) offer from Mittal.
Despite the new agreement with Mittal, the Severstal plan is legally binding and shareholders could back the Russian deal instead.
The Severstal merger proposal will not go ahead if shareholders representing 50% of Arcelor's capital reject the proposal during the shareholder meeting.
It will also be scuppered if Arcelor shareholders representing 50% of the steelmaker's capital tender their shares to Mittal.
On Monday, the Russian group said it was "reviewing its options" after losing the takeover battle, hinting it may sue Arcelor for breach of contract.

[JGuru]

Atlast Mittal has succeeded in his attempt. What a man of steel!! Arcelor had it's own tricks up it's sleeve
to avoid Mittal's bid to takeover it. And finally Mittal has got what he wanted.

[iMav]

well i think its highly unlikely that the share holders would vote FOR Severstal cuase now even arcelor board is in favour of mittal and most of the major share holders were planning to go against any merger with the russians ..... if the share holders are more of Chelsea fans they might vote for severstal because it is said that Roman Abromovich will be backing severstal's reviewed offer (speculations by the media)