Arcelor reviewing updated Mittal Steel bid

Arcelor reviewing updated Mittal Steel bid

Arcelor SA has said that it would be reviewing the new 25.8 billion-euro ($33 billion) bid from Mittal Steel after it is approved by the regulatory bodies.

Arcelor’s board met today at its headquarters in Luxembourg after Mittal Steel increased its hostile bid by 34 percent. The new bid has adding cash and stock benefits in addition to a pledge to cut the Mittal family’s control over the combined company.

Arcelor said in a statement: “The board acknowledged the recent evolution of the terms and conditions. This evolution confirms its initial assessment according to which the offer was greatly lacking in terms of valuation and particularly inadequate as regards corporate governance.”

The new bid also helped the company improve its position in the stock markets as the share prices went up 9 percent to 34.84 euros. In comparison, shares of Mittal fell 3.1 percent to $33.10 in New York.

Market analysts largely believe that the deal would benefit the shareholders of both the companies.