Mittal eying stake in AK Steel of US, says report

08 May 2007

Mumbai: Arcelor Mittal, the world''s largest steelmaker, is looking to acquire AK Steel the Financial Times reported on its web site.

align="left">AK Steel produces flat-rolled carbon, stainless and electrical steel products, as well as carbon and stainless tubular steel products, for automotive, appliance, construction and manufacturing markets.

align="left">Without citing any source or confirming through official sources, the FT Alphaville web site report said that a deal could value AK at around $40 per share, or just under $4.5 billion.

Arcelor Mittal declined to comment on the report while industry analysts raised doubts whther Arcelor Mittal would go ahead with such a deal in the light of possible anti-trust issues.

Investment banking sources in Europe also said an acquisition could raise competition concerns in the flat carbon market for the automotive industry in North America.

Arcelor Mittal had to divest its US steel plant at Sparrows Point to address US competition concerns after it decided to keep Arcelor''s Canadian unit Dofasco within the fold of the merged Arcelor Mittal group.