New Delhi: LN Mittal's turf with the world’s second largest steel conglomerate-Arcelor seems finally to be nearing an end.
Arcelor's shareholders are expected to take the final decision on the bid on Sunday's board meeting.
Despite Arcelor's attempts to spurn Mittal's offers, including the induction of a white knight in the form of the Russian steel company – Severstal, the bid is finally expected to go in Mittal’s favour.
Introducing Severstal into the bid apparently turned the tables for Mittal who got support from the Arcelor's shareholders who were not in favour of the Arcelor-Severstall merger.
On Wednesday, the Arcelor board postponed its annual general meeting, pending talks with Mittal.
Now it seems that the only bone of contention is the price that Mittal would offer per share to Arcelor.
"I would say that the value or total bid value, that values Arcelor at around €40 a share would be reasonable because it would leave the combined company with enough room to maneuver and not too high net acquisition," analyst, Commerzbank Jutta Rosenbaum said.
This would not be the first time that Mittal has revised his initial offer that was made first on January 27.
His new bid would have to be concluded before the offer deadline of June 29.
Unlike his previous stand on the issue of Arcelor's chairman, Joseph Kinsch remaining in office, this time it is said, Mittal has agreed to give Kinch the position of the president of the new company and himself hold the co-president's position till Kinsch retires next April.
Arcelor CEO Guy Dolle and Mittal’s son and CFO of Mittal Steel- Aditya Mittal will both be on the board that will jibe a majority of independent directors.
It is likely that Arcelor shareholders would control more than half the combined entity.
Regardless of what shape the merger may take, the current Mittal offer is still 20 percent short of what Arcelor wants.
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