Arcelor officially rejects Mittal's takeover bid

Luxembourg-based steel giant Arcelor announced today that it had formally rejected the unsolicited takeover bid by Mittal Steel, the world's largest steelmaker. Arcelor Board of Directors met on June 11 and unanimously decided to reject Mittal Steel's current revised offer and to recommend that shareholders support the proposed merger with Russian steelmaker Severstal. Having consulted Morgan Stanley on the financial aspects of Mittal Steel's revised offer, Arcelor Board of Directors unanimously concluded that Mittal Steel's current offer is inadequate as it continues to undervalue Arcelor and the Severstal transaction is a more attractive alternative from a strategic, financial and social point of view.