Shareholder groups drop plan to block ArcelorMittal merger meeting

Mumbai: A group of minority shareholders in Arcelor led by Bruno de Kerviler has dropped plans to get a court injunction to block a planned meeting on November 5 to complete the steelmaker''s merger with ArcelorMittal.

Kerviler, who heads an investor group representing six per cent of the Arcelor stock, said time was short and there was little chance of getting an injunction from a Luxembourg court before the scheduled 5 November meeting.

Arcelor accepted a €26 billion ($37 billion) offer from Mittal Steel last year, but six per cent of its shareholders decided not to tender their shares.

The group had previously filed an injunction in Paris in August to block a shareholder meeting needed to clear the deal.

ArcelorMittal is now offering eight of its shares for seven in Arcelor to the minority shareholders, against the takeover offer of 11 for seven last year.

Kerviler said the ratio is too low. ArcelorMittal dismissed criticism that it is paying too little.

Another minority shareholder group, meanwhile, said it had no plans to seek to block the deal despite deeming it unfair.

ArcelorMittal, which already functions as a single entity aims to finalise the merger in November and needs shareholders'' nod for it.