Steel industry expert Andrew Goodwin says Mittal could outbid Severstal: CNBC
26 May 2006Andrew Goodwin of Steel Business Briefing says Arcelor and Severstal both would be keen to tie up with each other. Goodwin further says, that Mittal Steel would probably be prepared to give a little bit more as Arcelor is the jewel in the crown for the steel industry worldwide. CNBC-TV18 shares excerpts from its exclusive interview with Andrew Goodwin:
How have you read this deal and legally do you think it will go through?
It is difficult to say whether it is going to go through, it is certainly an interesting situation that we have here. Severstal is the company, which has been improving the situation dramatically, in recent years. They are moving into different parts of the world including, North America and Europe.
They are certainly very keen to tie up with Arcelor. Arcelor would be very keen to tie up with them because, Arcelor's Guy Doelle, is looking for ways to circumvent the takeover by Mittal Steel.
What do you think Mittal Steel's game plan might be because the price per share is clearly higher than what Mittal Steel was offering?
I think Mittal Steel is probably prepared to give a little bit more. Arcelor is the jewel in the crown for the steel industry's worldwide. It seems that they are likely to up their offer.
By how much do you think they will match the €44 or better it?
A: I would not be surprised if they would better it.