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Arcelor
Mittal's JV talks with Chinese group fail
Beijing: Arcelor Mittal's talks for a joint centure
with China's Baotou Iron and Steel Group have collapsed.
This
is as Lakshmi Mittal chairman of Arcelor Mittal demanded
a 50-per cent stake in the JV and Beijing will not allow
foreign steel giants to take a controlling stake.
The
Chinese company said it had ended talks and was now scouting
for local partners.
China's
steel industry regulations bar overseas steel makers from
taking a controlling stake in joint ventures.
Arcelor
Mittal plans to raise its stake in Hunan Valin Steel Tube
& Wire Co when the Chinese steel maker issues new
shares. Arcelor Mittal holds a 29.5 per cent stake in
Hunan Valin and will take 49.3 per cent of the 520 million
new shares on offer, boosting its holding to 33.3 per
cent.
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Citigroup
has ambitious plans in Japan
Tokyo: Citigroup Inc. is planning to put in a bid
of $11bn in ailing Japanese brokerage Nikko Cordial Corp.
If successful, the deal would mark the biggest ever acquisition
of a Japanese securities firm by a foreign company, highlighting
the US financial giant's ambitions in the world's second-biggest
economy.
It
also would be the largest acquisition for Citigroup under
Charles Prince since he became the company's chief executive
in 2003.
Citigroup
already owns 4.9-per cent stake in the Japanese brokerage
and will bid for the rest. Citigroup said it will pay
Y1, 350 for each Nikko Cordial share, representing a small
0.75 pc premium to Tuesday's closing price of Y1,340.
Nikko Cordial shares jumped 14 pc on the Tokyo Stock Exchange
Tuesday.
Citigroup
and Nikko Cordial have long-standing ties. Citigroup recapitalized
Nikko Cordial in 1998 and the two companies formed a joint-venture
investment bank, Nikko Citigroup Ltd that handles mergers-and-acquisitions
advice and equity and debt underwritings.
Under
plans unveiled earlier this year, Citigroup will set up
a Japanese holding company, under which it will place
its retail, corporate banking and other operations.
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