The Financial Times of London reported early Tuesday that Arcelor Mittal may bid $40 per share, or $4.5 billion, to acquire Middletown, Ohio-based AK Steel Corp.
AK Steel's stock rose $3.21 a share on the New York Stock Exchange following this report; however, both companies have declined to comment on the possible takeover.
Financial experts have speculated that the bid is unlikely to go through since Mittal Steel already has a significant market share in the North American coated sheet market. Furthermore, US antitrust laws could prevent Arcelor Mittal from buying another coated sheet supplier to the automotive industry like AK Steel.
Once the merger between Arcelor and Mittal is final, the combined company will control 10 percent of global steel production.