arcelor mittal

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concerning deal between arcelor and russian severstal...just guess if u had a arcelor share....what wud u do...wud it be a smart step to exchange our share with mittal steel share or let the arcelor merge with severstal and let severstal owner win...
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Mittal has a message for India Inc: Go ahead, take on the world

Twelve days before his cherished merger of Mittal Steel and Arcelor formally goes through, Lakshmi Mittal has told Indians everywhere it is time to take on and conquer the world.

The lessons of his transnational success are plain, he told The Sunday Times of India, in his first interview with the print media after news that Arcelor shareholders had decisively rejected merger with Severstal and cleared the way to join with Mittal Steel. Today every Indian businessman has the same opportunities as me. Indian businessmen can go global, whether they live in India or not. Its a small world now, he said.

Speaking exclusively to this paper, the normally downbeat Mittal was ebullient, flushed with success and already busy making plans for the next stage of industrial expansion and consolidation.
He indicated that the new merged company Arcelor Mittal would regard the developing markets of Asia as those of great significance
as we look to take advantage of the forecast per capita steel consumption increase in these countries. Mittal also emphasised that the 12-million tonne greenfield steelmaking and mining facility in Jharkhand is a significant investment and one that will play a major role in the future success of Arcelor Mittal.

He said it would make sense for the combined company to focus on China and India but declined to address speculation that the new industrial behemoth would girdle the globe with hoops of steel by acquiring smaller steel companies everywhere, such as Indias Tata Steel. In response to the question, Mittal only said: Further consolidation is necessary and I think the (Arcelor) merger could well prove to be a catalyst for further mergers and acquisitions within the industry.

He dismissed suggestions that his industrial triumphs were the result of being an Indian outside India. He said reflectively, Oh no, when I left India the situation was very different. Today, India is open. The government encourages businessmen to go global.
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rmbt Says
Finally the merger is happening.Kudos to Mittal for his perseverence.He has made Indians proud of his achievment!!

Yeah, i am pretty sure that with Mittal-style management, Arcelor's profits would improve really gud!
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Finally the merger is happening.Kudos to Mittal for his perseverence.He has made Indians proud of his achievment!!

Only thing i like about stone in my path is, when I cross them, they become my milestones!
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Hi guys

Thanks for ur valuable input. Not havin a commerce background I am havin difficulties in writin the case study and I am havin second thoughts about this. However, I havent found real time to sit down and read the many articles that I have managed to collect.So before givin up I will giv it a shot. Thx lifehedger, you cleared many doubts. Thx kushalc 4 ur useful suggestions. I am open to more as I am really strugglin with ideas.
I will get bac to u after readin "all" articles

Hopin to hear more from you all and suggestions are much appreciated and welcomed
thx
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The latest news on this front is : Arcelor has rejected Mittals reviesed proposal although Mitall were ready to raise the price of the deal!!

Only thing i like about stone in my path is, when I cross them, they become my milestones!
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..............

reasons..!!

.

Three, Arcelor's shareholders know that a Mittal-Arcelor merger will create a 72-tonnes-a-year steel giant that will stand up to the real threat lurking around Europe's corner: China. Chinese steel makers are exploding with new capacity. In a few years they will dominate global steel.



Couldn't agree more. If something's not done about it, China in the next few years will almost monopolise the global steel production. And once that happens, manipulating prices of steel the world over, will be the next step. And knowing China, it won't have too many moral complications in doing so.
India has probably recognized this threat as well as most other countries of significance and that's why its been so vociferous in its support of Mittal.
Arcelor might not like it, Luxemburg might not like it and maybe its not ethically correct too, but its a necessary evil and it needs to be supported.


Edit: @Natashaa, how about doing a case study on the Louvre and how its run! Da Vinci Code is hot these days and anything related to it is hot too!
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Hi guys

I am happy that we are still talkin about this controversy. I am absolutely useless in matters of the financial world. However, i am hooked on it bcoz I am studyin french and considerin doin a case study on this. I am hopin some further discussions will help me grasp the fundas of the mittal-arcelor affair.
Here are some questions which continue to puzzle me
1. How did the whole bidding process start? Some1 has mentioned abov that the Arcelor steel giant was doin v well and that I understand it was the no.1 steel industru until recently.

2. How can mittal pull this thru when only 30% of shareholders believe that severstal was a mistake? Are ther any other ways to acquire a company by force/hostile bid?


looking forward to hear more on this
thx


friend.....
if u r studying french and hence want to have a case study on Mittal/Arcelor...it may not be very easy or advisable since u r self confessedly new to financial stuff.!!

on a light note.....i even recommend you to do a case study on ...........French Fashion Industry.......:) ........lots of intersting stuff out there..!!!!

regarding 2 ques u put up....
answer to 1 st is ........it started when mittal decided that he wants to have control across the regions of the world...gives him power in supply control...price making etc.....some 5 months ago....as he had already acquired IMG of USA ...and other regional players................this was his strategy of killing two birds with one shot..!!
for any humungous takeover...u need to access the valuation...and qualitative n quantitative benefits....!!!

also please friend..........make an effort to go through sites and links on various fianncial sites... u will get ans instantly..................unless u do that u will be bombarded with such ques..........

2nd if there is internal resistance or unrest ....AGM decides the move by vote by shareholders....with 2/3 majority..and that includes public/funds/FIIs etc....so its not yet official about the final decision.....
june end is the date..!!
and yes hostile bids are legal.......! hostile may refer to excess overvaluation call or mere ...........derogatory stance by calling a valuation deal which is impossible ...yet purpose maybe that the company wants to humiliate the perceptive value it thinks regarding an another company..!!!

like...for a 10 billion company (official valuation) if one puts a hostile bid of say 6 billion...its impractical but still is rude comment by the interested company....u can say its dirty economics at work..!!.....if another company puts up for 14 billion it may sound hostile since its too lucrative and the company may have no choice but to give up even against the promoters wish....since nothing is more attractive than the power of money.....correlate this with arcelor and u may get the picture...!!

thanks..!!
lh
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Hi guys

I am happy that we are still talkin about this controversy. I am absolutely useless in matters of the financial world. However, i am hooked on it bcoz I am studyin french and considerin doin a case study on this. I am hopin some further discussions will help me grasp the fundas of the mittal-arcelor affair.
Here are some questions which continue to puzzle me
1. How did the whole bidding process start? Some1 has mentioned abov that the Arcelor steel giant was doin v well and that I understand it was the no.1 steel industru until recently.

2. How can mittal pull this thru when only 30% of shareholders believe that severstal was a mistake? Are ther any other ways to acquire a company by force/hostile bid?


looking forward to hear more on this
thx

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Hi
In my opinion its a clear case of racialism as Jaques chiraq, french govt, luxembourg govt are publicly opposing the mittal deal when they have no business to do so.
Hoping to hear your views on this


Although comments were passed on to tickle the racist side, the government of Luxemborg has a say in this because they own 5% of arcelor. Infact Mittal has proposed a shift of his corporate headquarters to Luxemborg if it goes ahead with the deal to appease the Luxemborg Government.


natashaaa Says
Can you please tell me why Mittal cant place its hostile takeover bid on arcelor-servastal combo? What are the various ways to takeover a company?


The bid is considered hostile because it was issued without the consent fo the Board of Directors of Arcelor. There are a number of mergers and acquisitions that take place with consent form the acquirer and the board. It is indeed essential for Mittal as it would stamp his supremacy in the global steel market. If this deal goes through the Mittal-Arcelor combine would be better larger than the second largest steel manufacturer by 3 times in terms of the output quantity.

The Arcelor BOD on the other hand is trying its level best to ward of the deal stating Mittal's corporate governance which is 69% family owned. Mittal has countered saying that he would dilute his share once he tahkes over Arcelor.
Guy Dolle went to the extent of comparing Mittal steel to cologne producing low quality steel whereas Arcelor steel is similar to perfume . Mittal again came out with statements taht they are no1 in terms of quality in the US.
The war of words has gone on formsome time.
But as of now everything lies in the hands of the shareholders and i strongly believe that Mittal would pull this through.
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Hi

I am new here . I have been following the mittal arcelor controversy since janaury end now. Sadly, I dont understand much of it . Can you please tell me why Mittal cant place its hostile takeover bid on arcelor-servastal combo? What are the various ways to takeover a company?
In my opinion its a clear case of racialism as Jaques chiraq, french govt, luxembourg govt are publicly opposing the mittal deal when they have no business to do so.
Hoping to hear your views on this



hi natasha......

well.........theres no end to bids.......if it defies logic /stance/conviction
why should he go for it..? the reality is naked...!!

questions are popping against Arcelor already....!!

analysts/minority sharehlders are already aware of the merits of Mittal deal..
mittal bid has a cash component apart from the share swap..!
that too at a premium tp Arcelor price...
regarding takeover ,u either merge or acquire a stake..(more than 50%voting right).........
financial valuations are complex..they discount future and goodwill too..!

as far as politics/racisim is concerned.......economic sanity is the biggest force and bait..! it shall prevail..
recently Vijay Mallaya (UB) had to withdraw his bid for the same reasons..!

ultimately the interests of shareholders have the final say..........n all other
forces will subside to the potential viabilities of the force called MITTAL..!!

read more on the issue ...by the links that i have given above............



thanks
lh
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