Mittal race for Mitsui's Sesa Goa stake

Arcelor Mittal's bid of Rs2050 per share is said to be the winning bid to acquire Japan's Mitsui & Co.''s 51-per cent stake in India''s largest private miner and iron ore exporter Sesa Goa Ltd

Vedanta Resources, Brazilian miner CVRD and India''s Aditya Birla group were the other final bidders after Anglo American Plc and Rio Tinto Plc were excluded.

Arcelor Mittal's bid values India''s largest iron ore producer at Rs8,100 crore ($1.83 billion), about Rs1600 lower than its pre-budget bid.

The bids from the four short listed bidders, were Original in the range of Rs2,200 to Rs2,500 per share and were lowered after the export duty on iron ore in the 2007-08.

Mitsui mandated Morgan Stanley to find a buyer for its 51-per cent in Sesa Goa as part of a global strategy to exit the mining business.

Arcelor-Mittal's bid values Sesa Goa at about Rs 8,000 crore. That is Rs 1700 crore lower than its pre-budget bid. Besides, Sebi rules state that a winning bidder must make an open offer of another 20%.

For Arcelor-Mittal, bagging Sesa Goa will mean access to mines in Goa, Karnataka and Orissa. Sesa Goa also has an exploratory lease for the Chiria mines in Jharkhand.

CNBC-TV18 reported quoting sources that Arcelor-Mittal is also negotiating with Mitsui for its global iron-ore deposits as Mitsui wants to quit its non-core business.