Mordashov mulls his final move in Arcelor battle

‘‘There is still no decision,’’ a Severstal spokeswoman said in Paris a day after the Russian billionaire told French parliamentarians he would like to make an additional offer for Arcelor. He said he was trying to get the finances together but was unsure whether he would succeed.

On Thursday business daily Vedomosti, quoting two unnamed sources with knowledge of Severstal’s plans, said Mordashov would announce in the next two days that he would not counter an offer for Arcelor by Mittal Steel and accept 140 million euros ($176 million) in compensation.

A Severstal spokeswoman in Russia, Olga Antonova, declined to comment on this and would not say when the company planned to make a further statement.

Mittal’s sweetened offer of 12.55 euros in cash plus 13 new bidder shares for 12 target shares values Arcelor at around 24.5 billion euros at current market prices, or 38.06 per share.

On Thursday morning, Arcelor shares were down 1.1 per cent at 36.80 euros.

Vedomosti said Mordashov had not received the backing of Russia’s richest man, Roman Abramovich, whom Russian media had earlier cited as a possible backer of a higher bid.

A source close to Severstal told Reuters it was unlikely the company would lead a consortium to buy Corus Group.

Corus shares soared on Wednesday after dealers said there was talk that such a consortium was considering a bid valuing the Anglo-Dutch steelmaker at $8.7 billion.

Severstal has said it is reviewing all its options after Arcelor bowed on Sunday to an improved takeover bid from Mittal, rejecting a proposed partial merger with the Russian steel firm.

The Arcelor/Mittal Steel would create the world’s biggest steel group by far with a 10 per cent global market share.

Mittal Steel Chairman Lakshmi Mittal is confident that the Arcelor shareholders, meeting on Friday in Luxembourg, will vote against the proposed tie-up with Severstal.Marcel Michelson & Julien Ponthus