m

 

  ± A
BATTLE OF GLOBAL TITANS IN THE
EUROPEAN MARKET FOR
CORPORATE CONTROL
HISTORY OF MITTAL STEEL
m The world's largest and most global steel
company
m Production 49.2 million tons & Revenues $28.1
billion in 2005
m Operation in 16 countries
m They employ 224,000 people spanning 49
different nationalities
m 5000 strong customer base, spanning 150
countries
BOARD OF DIRECTORS
ëakshmi N. Mittal Chairman of the Board of Directors and Chief
Executive officer

Aditya Mittal Member of the Board of Directors and President

and Chief Financial Officer

Wilbur ë. Ross Member of the Board of Directors

Narayanan Vaghul Member of the Board of Directors

Ambassador Andrés Member of the Board of Directors

René ëopez Member of the Board of Directors

Muni Krishna T. Reddy Member of the Board of Directors

m





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m Arcelor is formed by Arbed (ëuxembourg),
Aceralia (Spain) and Usinor (France) in 2001
m Technical, Industrial, and Commercial
synergies in a joint venture to create a global
leader
m Officially launched on February 19, 2001

m Most of its 90 plants are in Europe but most

of Mittal·s Plants are outside of Europe
Ê    

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m ‰anuary 14: ëN Mittal talked to Arcelor CEO Guy
Dolle about the possibility of Mittal Steel
acquiring Arcelor. Guy Dolle categorically turns
Mittal down.
m ‰anuary 27: Mittal Steel launches a formal
takeover bid for $22 billion dollars.
m ‰anuary 29: Arcelor rejected the offer and the
French government said it has "great concerns"
about the merger. Arcelor has plants in France.
THE WAR OF WORDS
m Mittal said that Arcelor Chief Executive Guy
Dolle wasn't positive about the approach, but
he was confident Arcelor's shareholders will
back the bid.
m Mittal offered 27% premium over Arcelor·s
share.
m Guy Dolle said offer was inadequate and
strategically unsound.
m European politician supported Mr. Dolle.
m ëuxembourg·s Prime minister said ´ A hostile
bid calls for a hostile responseµ.
m They dismissed the idea of a merger with a
"company of Indians".
m There was a lot of controversy where racist
remarks were made against ëN Mittal.
m Trade unions expressed concern about
potential job loss.
   

m 4th Feb: Arcelor doubled its dividend &
announce plans to buy back stocks of $8.75
billions at high price.
m Change the law so that Mittal would be
required to pay in cash.
m 18th Feb: Mittal said, if he·ll receiving more
than half of the shares in initial bid then
remaining share @ lower price.
m April 19: Mittal Chairman and Chief Executive
ëakshmi Mittal calls Arcelor Chairman ‰oseph
Kinsch to ask for "friendly discussions'' about
revising his proposal in return for support from
management.
m April 28: Mittal tells Kinsch he is ready to make
"significant corporate governance changes'' and
revise the offer.
m May 4: Kinsch says the offer is "wholly
inadequate'' and Arcelor has significant concerns
about the real value of Mittal shares.
m May 9: Mittal Steel says it is ready to revise the
offer and make corporate governance changes
"in the event of a recommended deal.'¶
m May 10: Arcelor Chief Executive Guy Dolle
describes as "insufficient'', Mittal's offer to
revise its bid.
m May 11: Arcelor says it has filed a lawsuit in the
United States against Mittal for copying a type
of steel for the auto industry.
m May 12: Both companies announce better-than-
expected results, although profits suffer due to
higher costs of raw materials. Arcelor toughens its
stance, announcing plan to spend up to $9.5
billion to buy back almost a quarter of its shares.
m May 18: Mittal formally launches its offer.

m May 19: Mittal raises its offer by 34 percent,

bringing it up to $32.90 billion and says it would
reduce the Mittal family's stake in the company.

  

m May 26: Arcelor announces a deal with Severstal that will give it a
controlling stake in Russia's steelmaker and $16.4 billion for 32 percent of
Arcelor.
m ‰une 2: European Union antitrust regulators approve Mittal bid on condition
the new combined steel giant sell off some of its facilities if the bid
succeeds.
m ‰une 6: The European Commission approved the Mittal-Arcelor merger.
m ‰une 9: Arcelor confirms it has held talks with Mittal on the term of its bid.
m ‰une 12: Arcelor rejects Mittal revised bid and recommends shareholders
accept deal with Severstal.
m Mittal says it won't budge on price, but is prepared to make changes related
to corporate governance.
m ‰une 20: In a bid to woo Arcelor, Severstal revised the terms of its merger
proposal, saying that majority owner Mr Alexei Mordashov would settle for
25 per cent of the new group rather than the initially proposed 32.3 per
cent and raised its offer by about 2 billion.
m

 m

m ‰une 21: Market regulators in France, Spain,

ëuxembourg and Belgium suspend Arcelor shares,
saying they want more clarity on the state of talks
with Mittal and Severstal.
m 57.95% per cent of Arcelor shareholders voted
against the Severstal offer.
m ‰une 24: Talks on between Mittal Steel and Arcelor

m ‰une 25: Arcelor's board agrees to sweetened bid

from Mittal worth about $32.8 billion.
DEAL COMPLETED
m In the process, they accept Mittal Steel's $32.8
billion offer, which was approved by the Board of
Arcelor on ‰une 25 after a five-month long battle.
m Arcelor had recommended acceptance of share
and cash from Mittal Steel valuing at about $32.8
billion, which creates a group with 3,20,000
employees producing about 116 million tonnes of
steel annually, accounting for about 10% of the
world market.
m "We have created in five months more than EURO
12 billion in value," Kinsch said.

 mÊ  


m Consolidate regional high-end leadership into
global customer platform
m Achieve industrial excellence through state of the
art assets sustained by sound capital expenditure
and best in class R&D
m Realise commercial leadership through strong
distribution channels
m Capture growth in BRICET countries, utilising
existing leadership in high-end products in mature
economies
m Accelerate growth in key emerging markets
such as India and China
m Achieve cost leadership and operational
excellence across product range
m Maintain high level of vertical integration to
hedge against raw materials price fluctuations
m Focus on people management and social
responsibility
, "-,(.."
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