Paris: Mittal Steel, the world's largest steel-maker company owners are now worried about Arcelor deal in the danger of being thwarted due to a third party entering in the deal- a Russian Steel making company called Severstal.
Apparently, attempts have been made by the rival steel company-Arcelor to ally itself with Russian company Severstal in order to thwart Mittal's hostile takeover bid.
"We are concerned that Arcelor is contemplating a dilative transaction, possibly without recourse to its shareholders, which could potentially thwart the Mittal Steel offer," Mittal said in a statement on Friday.
A company spokesman said the statement referred to an offer to open up Arcelor's capital to Severstal.
Media reports have said that Severstal could acquire 23 per cent stake of the European steel manufacturer.
"We have offered a compelling 70-per cent premium to Arcelor shareholders which contrasts with a possible reverse takeover of Arcelor," the statement said.
Mittal is offering €25.8 billion (USD 32.9 billion) to buy Arcelor, or €37.74 per Arcelor share.
Although, Arcelor declined to comment on any overtures to Severstal or on Mittal's response, a source close to Arcelor- the world's second largest steel producer, said its board might issue a statement on Friday.
Arcelor and Severstal had set up a joint venture in April 2002 after which they opened a joint factory in Russia.
For several weeks the media has speculated that Arcelor is seeking a white knight to prevent Mittal's bid, which the Arcelor management has rejected.
Several potential Russian partners have been mentioned. In addition to Severstal, they have included magnate Valadimir Lissin and Magnitogorsk Iron and Steel Works to the bid.
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