Mittal Steel starts merger talks with Arcelor

Mittal Steel, the world's largest steelmaker, announced today that it had started merger talks with Arcelor regarding its proposed takeover of the Luxemburg-based steelmaker. "We have started discussions with Arcelor. Yesterday was the first day," Malay Mukherjee, Mittal's chief operating officer, told to press. Mr. Mukherjee also said that he believed Mittal's offer was more attractive than a deal with Severstal and he supported his belief by saying "We are definitely more global, our assets are more balanced. We are in all different markets and countries. Severstal is still limited to Russia and has a very small presence in the USA. We are convinced that our offer makes the best value for Arcelor shareholders." As reported by SteelOrbis, Arcelor, which has so far rejected Mittal's bid worth Euro 21.5 billion, revealed its intention to join with Severstal late last month. Sources report that Arcelor shareholders will meet on June 28 to vote on the Mittal and Severstal deals. Meanwhile, on June 6, 2006, Arcelor appealed to the European Commission (EC) for clearance of its merger with Severstal. Sources also report that Severstal Chairman Mr Alexey Mordashov intends to keep the stake in Arcelor he stands to receive even if Mittal Steel ends up with a big stake in the company.