The battle between the world’s two largest steel companies intensified today when Mittal Steel urged Arcelor shareholders to resist an alternative tie-up in Russia.
Mittal used a full page national newspaper advertisement to appeal to Arcelor shareholders to vote against a planned merger with Russian steel company Severstal.
The Arcelor board agreed the deal with Severstal as part of its defence against Mittal’s £17.6bn (€25.8bn) hostile takeover bid.
But Mittal today insisted its proposal offered Arcelor shareholders better value.
It marked an escalation in tensions between the two companies which first came to light five months ago when Mittal launched its audacious bid for Arcelor.
Arcelor’s board rejected the offer and have continued to oppose any deal with Mittal, which is owned by Britain’s richest man Lakshmi Mittal.