Severstal threatens Arcelor-Mittal deal

‘‘In light of this we are very surprised that the board did not invite us to discuss our revised proposal nor offer us an opportunity to respond as we had requested. We are now reviewing all of our options.’’

Analysts say Severstal would decide on its next move within the next few days and has not yet given up on the possibility of trying to pip Mittal with its own Arcelor deal despite Sunday’s agreement. Severstal said that it was going to improve its bid ahead of the June 30 meeting of Arcelor shareholders. On Sunday, Arcelor agreed to a revised offer from Mittal Steel worth 25.6 billion euros ($32.2 billion).

Mittal Steel and Arcelor were already the world number one and two. As Arcelor-Mittal, Lakshmi Mittal will run a steel company three times the size of its nearest rival.

Alexei Mordashov, who controls Severstal, has forged an alliance with Roman Abramovich, the owner of UK-based football club Chelsea to offer a higher price for Arcelor shares.

Addressing a news conference in Luxembourg today, Chairman of Arcelor Joseph Kinsch said Arcelor board would meet again if a counter offer for Arcelor is made by Severstal at a higher price for 100 per cent equity. Severstal, which issued a statement after Arcelor-Mittal announcement to merger, said it will look at all options.

Mittal however was confident that his deal will go through. Mittal Steel has emerged as head of world’s largest steel company Arcelor Mittal after a five-month audacious takeover battle.