Severestal''s Alexei Mordashov, who made an unsuccessful
bid for a stake in the world''s second-largest steel maker
Arcelor SA, is yet to make up his mind on his next course
of option. A day before the crucial meeting of Arcelor
shareholders, the Russian steel magnate is still pondering
whether to raise his bid or not.
this week, Arcelor''s board of directors agreed to a merger
with the world''s largest steel maker, Mittal Steel, ending
a five-month battle for control, leaving its favoured
suitor Severestal out in the cold.
is still no decision," a Severstal spokeswoman said
in Paris a day after Mordashov told French parliamentarians
he would like to make an additional offer for Arcelor.
Mordashov, however, said he was not sure of arranging
newspaper Vedomosti, meanwhile quoted two unnamed sources
with knowledge of Severstal''s plans as saying that Mordashov
would rather accept the €140 million ($176 million)
compensation than counter the offer for Arcelor by Mittal
also said Mordashov is yet to receive any backing from
Russia''s richest man, Roman Abramovich, whom Russian media
had earlier cited as a possible backer of a higher bid.
Mittal and Arcelor are still at odds over the future of
Dofasco, the Canadian steel producer Arcelor grabbed in
a hostile take-over for $4.86 billion on January 24, barely
three days before Mittal made its first approach.
Canadian unit Dofasco remains firmly out of reach for
Mittal Steel, which has Arcelor in its grasp. Arcelor
had transferred Dofasco to a Dutch foundation to keep
it out of Mittal''s hands.
Steel chief executive Lakshmi Mittal said at a press conference
earlier this week that he''d love to sell the unit to its
original owners Germany''s ThyssenKrupp AG.
Arcelor''s existing rules, only the board of The Strategic
Stitching, which governs Dofasco, has the power to approve
a sale and the board can only transfer Dofasco back to
Arcelor. It''s not vested with the power to sell the company
to a third party directly.