Mittal woos Arcelor with earnings increase

Mittal Steel disclosed that it expects to increase core earnings by more than $4 billion over the next three years in a move to influence directors and shareholders of Arcelor. The world's largest steelmaker said its earnings before interest, tax, depreciation and amortization (EBITDA) should reach $9.9 billion in 2008, from $5.8 billion in 2005. The forecast does not include the potential acquisition of Arcelor, which on Monday rejected Mittal's latest bid. Mittal Steel also forecast to post EBITDA of around $7.3 billion this year, including a second-half contribution of between $4.2 billion and $4.4 billion. Shipments for 2006 are expected to be around 60 million metric tons.