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Regular-article-logo Tuesday, 29 April 2025

Rejections fail to dent Mittal spirit

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The Telegraph Online Published 03.02.06, 12:00 AM

Madrid, Feb. 2 (Agencies): Spain joined France and Luxembourg in opposing Mittal Steel?s $24-billion hostile bid for rival Arcelor on Thursday, while Lakshmi Mittal said he did not intend to add any more cash to the offer.

Politicians in France and Luxembourg have already reacted angrily to Mittal Steel?s bid, despite a charm offensive by its father-and-son team of top executives, while Spain had been much less vocal.

However, at a meeting in Madrid, economy minister Pedro Solbes said Spain would also oppose the bid.

?The position of the Spanish government will be in line with the French and Luxembourg governments,? an economy ministry spokeswoman said.

?Neither before nor today have we received any concrete information about the deal, about the industrial strategy, the business plan, about jobs,? she added.

Mittal Steel?s chief financial officer Aditya Mittal, however, put a brave face on the meeting with Solbes, calling it ?good and constructive?.

The senior Mittal has often said the merged company would not shut any plants or fire any workers, although he expects cost savings of $1 billion from the deal to create a steel giant controlling 10 per cent of the global market.

At a news conference in Madrid on Thursday, he said he would keep working to win governments around to the bid.

?The idea is not to have any misgivings or negative relations with other authorities. We?ve started a dialogue and we will continue ... to explain the logic of this transaction,? Mittal said.

The Prime Minister of Luxembourg, which is Arcelor?s top investor with 5.6 per cent, has vowed to orchestrate opposition from European governments, saying a ?hostile bid...calls for a reaction that is at least as hostile?.

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