Mittal Steel has offered to pay $3.2 billion in cash to buy out minority shareholders of Arcelor Brasil as part of its merger with
Luxembourg-based Arcelor.
This latest offer follows a ruling from Brazilian regulators requiring Mittal to make an additional offer to Arcelor Brasil shareholders in addition to the $31.9 billion bid for the parent company.
Under Mittal's proposed buyout, Arcelor Brasil's shareholders can choose cash payment or a combination of cash and shares. If 100 percent of the shareholders accept the offer in cash, the buyout would be worth $3.2 billion, valuing the entire Arcelor Brasil unit at $9.79 billion.
It is very possible that the Brazilian shareholders will reject Mittal's offer or demand more, as some shareholders are already indicating they will contest Mittal's offer.