Arcelor might have shareholder problems in deal with Severstal

Arcelor might have shareholder problems in deal with Severstal

Incoming reports say that the Shareholders of European steel giant Arcelor are attempting to block its defensive merger with Russian steel company Severstal.

This was reported by The Business, which said that British and American shareholders of Arcelor are this weekend trying to assemble the fifth of the company’s shares needed to call an extraordinary general meeting.

Moreover, France’s leading shareholder rights group ADAM is planning to demand that Severstal launch a takeover offer for the entire Arcelor group. Their current offer is of a stake of 38%. The demand might cite law requirement for such a requirement.

Arcelor recently announced their decision to merge with Russian steel company Severstal as they are trying hard to thwart off the acquisition offer from Mittal Steel. Mittal Steel is hopeful that the shareholders would prefer their offer as they bring them more value for the shares in the company.