Thursday, May 18 2006 14:29 Hrs (IST) - World Time -

Paris: Mittal Steel was to formally launch today (May 18, 2006) a takeover bid for European rival Arcelor that would create the undisputed world champion of steel groups.

When trading begins on the Belgian, French and Luxembourg stock exchanges, Arcelor shareholders will have a chance to exchange their equity for Mittal shares and cash via an offer that currently values Arcelor at 22 billion euros (28 billion dollars).

Stock market authorities in the those three countries, where Arcelor shares are listed, are to publish Mittal's offer on their Internet web sites early today, with Spanish officials expected to follow suit soon.

The offer runs until June 29 in all four nations. The cash and share offer of 28.21 euros per share, with 75 percent in Mittal shares and 25 percent in cash, corresponds to a proposition originally made by Lakshmi Mittal on January 27 in London.

Yesterday, Arcelor shares closed down 0.64 per cent at 32.85 euros on the Paris stock exchange, while the CAC 40 index of leading shares lost 3.18 per cent.

Market authorities in Brussels, Luxembourg and Paris said that Mittal's published offer would be accompanied by a reply that Arcelor must publish for the duration of the offer's acceptation period.

That response is to include the recommendation of Arcelor's board, which has five days to officially make its position known.

Since the bid was mooted in late January, the board and its chief executive Guy Dolle have repeatedly expressed fierce opposition and have taken several measures aimed at thwarting a takeover.