Mittal bid: India warns EU again

The raging controversy over Lakshmi N. Mittal8217;s takeover bid of rival Luxembourg-based Arcelor, continued today with India warning Euro...

The raging controversy over Lakshmi N. Mittal8217;s takeover bid of rival Luxembourg-based Arcelor, continued today with India warning European Union that attempts to thwart Mittal acquisition violated EU8217;s commitment to WTO to accord national treatment to cross border investment.

Taking up the matter with the EU Trade Commissioner Peter Mandelson, Indian commerce minister Kamal Nath on Wednesday said this was really a question of cross-border investment guidelines that require foreigners and locals to be treated equally.

The minister has also written a letter to Prime Minister Manmohan Singh ahead of French president Jacques Chirac8217;s visit, when the issue could come up for discussions. Belgium and France have significantly and publicly disagreed on the raging Mittal-Arcelor boardroom battle.

On the other hand, Mittal Steel said on Wednesday it was not considering increasing its unsolicited offer for closest rival Arcelor.

If Mittal Steel is successful in a bid for European rival Arcelor, it will set off a steel industry free-for-all with several US manufacturers among potential takeover targets, analysts said on Wednesday.

Arcelor, meanwhile, is resisting Mittal and pursuing Canada8217;s Dofasco to gain a North American foothold. Michelle Applebaum, of Applebaum Research in Chicago, said that while US Steel might be a target, Mittal would have to divest most of its US flat-rolled capacity to resolve anti-trust issues from its acquisition last year of International Steel Group ISG.

On response to the Arcelor bid Mittal said, 8220;We are pleased with the very positive reception our offer has received, and are confident that progress is being made towards establishing the regulatory framework for the offer8221;.

Mittal Steel profit falls 58

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MUMBAI: World8217;s largest steel producer Mittal Steel on Wednesday said its net income in the December quarter fell 58 per cent to 650 million in the fourth quarter-ended December 2005 from 1,554 million in the fourth quarter of 2004.

The company attributed the fall in profit to the 9 per cent decline in steel prices in the fourth quarter than a year earlier. The company also said the full-year figure was not directly comparable with the previous year because of Mittal8217;s acquisitions and reorganisations during 2005.

For the full year, Mittal reported that net income dropped by 28.4 per cent, at 3.365 billion in 2005, as compared with 4.7 billion in 2004. Sales remained stagnant at 7.054 billion for Q4 as against 7.050 billion in Q3.

8216;8216;We are pleased to report solid performance in a more challenging year,8217;8217; said Chairman and CEO Lakshmi N. Mittal. 8216;8216;2005 was also a year of considerable strategic progress for the company as we further expanded our global position.8217;8217; 8212; Ens