Paris: Mittal Steel's chairman said on Wednesday he was confident Arcelor investors would reject a tie-up with Severstal, which was mulling its options after being spurned in a takeover tussle.
Just days after Arcelor's board accepted a bid by Mittal, derailing Severstal's previous tie-up plan with Arcelor, the Russian steel firm was eyeing Anglo-Dutch rival Corus, dealers said on Wednesday.
Traders reported talk that a consortium led by Severstal was considering a bid for Corus at 520 pence a share.
A Severstal spokeswoman in France declined to comment. "We are considering our options and will announce a decision when it is taken," she said.
After a bitter five-month battle, Arcelor's board accepted on Sunday a sweetened cash and equity offer, worth around 24.6 billion euros ($31 billion), from Mittal to create the world's largest steelmaker by far.
In an attempt to fend off Mittal, Arcelor had proposed to acquire Severstal, controlled by Alexei Mordashov, and give him a minority controlling stake in the combined company.
Arcelor shareholders are due to vote on the Severstal deal on Friday.
The controversial tie-up will be cancelled if shareholders representing over 50 percent of Arcelor's capital vote against it.
About a third of Arcelor shareholders usually attend meetings but Mittal Chairman Lakshmi Mittal told French parliamentarians he was confident they would turn up in sufficient numbers at the meeting to reject it.
"Mr Mittal was extremely confident about that point," Patrick Ollier, chairman of the French National Assembly's economic affairs commission, told reporters.
Severstal deal
The Severstal deal will also lapse if over 50 percent of Arcelor's capital on a fully diluted basis is tendered to Mittal's public offer.
Sources close to Arcelor and Mittal said the planned dilution due to the Severstal deal meant that over 70 percent of Arcelor shareholders would need to tender their shares to Mittal if shareholders do not vote against the Severstal tie-up on Friday.
Mittal smiled as he was besieged by reporters, photographers and television crews as he arrived for the hearing, but declined to talk. He left via a back door.
Ollier said later that Mittal had also informed the commission of his business plan and the rationale behind the Arcelor deal, and the parliamentarians had given him their full backing.
Mittal had also allayed fears about corporate governance and jobs, Ollier said. Severstal's Mordashov was scheduled to meet the French parliamentarians later on Wednesday.
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