Update: Mittal raises bid ahead of Arcelor shareholders'' meet
19 May 2006
Arcelor''s shareholders are meeting today to discuss the buyback proposal.
The new offer values Arcelor at €37.74 per share based on Mittal Steel''s May 18 share price, a premium of 34 per cent over the last offer, and 70 per cent over the offer on January 26, 2006, the previous day''s closing when Mittal announced its take-over intentions on January 27. The latest offer raises Arcelor''s equity value to €25.8 billion ($32.9 billion).
The new "mix and match" offer gives Arcelor shareholders three options:
- They can now choose between one Mittal Steel share and €11.10 euros ($14.16) in cash for each Arcelor share they own
- Or 17 Mittal Steel shares for every 12 Arcelor shares
- Or €37.74 ($48.15) in cash for each Arcelor share
Shareholders may opt for a cash or stock mix in any proportion they choose, provided the maximum consideration does not exceed 29.4 per cent of the aggregate amount in cash and 70.6 per cent in stock.
Accordingly, the maximum amount of cash that Mittal Steel would pay will be approximately €7.6 billion ($9.7 billion) an increase of 57 per cent and the maximum number of Mittal Steel shares to be issued will be approximately 684.46 million.
Mittal''s first offer in January valued Arcelor at about €28.21 ($36.02) per share, or euro18.6 billion ($23.75 billion) total. Arcelor had dismissed the previous offer to combine the world''s largest steel makers as hostile saying its board would meet to evaluate the new terms.