ArcelorMittal has announced that it has received a writ of summons to appear in summary proceedings initiated by certain Arcelor shareholders, including SRM Global Master Fund Limited Partnership, Trafalgar Catalyst Find and Trafalgar Entropy Fund, before Rotterdam Court on August 22, 2007.
The petitioners are seeking an injunction against the Arcelor and Mittal Steel merger on the grounds of an unfair share exchange between the companies. According to the merger terms the share exchange ratio stands at 11 ArcelorMittal shares for every seven Arcelor shares.
In reaction to the threat of legal proceedings, ArcelorMittal has stated that it is now proposing a merger exchange ratio of eight ArcelorMittal shares for every seven Arcelor shares, in order to allow the merger to proceed.