
Arcelor taking Dofasco private after nabbing 98.5 % of shares CBC News \|\| March 10, 2006 Related - Canadian Mergers hit $166-billion Steelmaker Arcelor SA has won 98.5 per cent of Canada's Dofasco Inc., after a long bidding war that will cost the Luxembourg company nearly $5.6 billion. Meanwhile, Mittal Steel Co., controlled by Indian citizen Lakshi Mittal, is trying to buy Arcelor for $22.1 billion US, and sell off Dofasco to Germany's ThyssenKrupp AG. If all the deals in this international chess game go through, Mittal would become the world's largest steelmaker with nearly 10 per cent of global steel production and a market capitalization close to $40 billion US. It may also change Dofasco's nationality for the third time this year. Based in Hamilton, Ont., Dofasco (TSX:DFS)started this year under a Canadian flag and replaced it with Luxembourg. India could come next, followed by Germany. Mittal submitted a detailed business plan to the Belgian government earlier this week in hopes of winning that nation's approval for the complex deal. It expects an answer from Belgium later this month. Mittal will then pitch its deal to France and Germany. Article Posted at www.KnowledgeDrivenRevolution.com Many European countries have objected to Mittal's takeover because they fear losing the benefits of competition, and their control of a fundamental industry, the steel that Arcelor makes and thousands of Arcelor jobs in Belgium and France. In addition, several European governments own a share of Arcelor. Meanwhile, the Canadian end of the deal is progressing slowly but steadily to completion. Arcelor announced before markets opened Wednesday that shareholders had tendered 7.97 million extra common shares since Feb. 20, when the original offer was extended. That gives Arcelor a total of 77.5 million common shares or 98.5 per cent of the total outstanding, at a price of $71 a share. Arcelor then plans to force the remaining shareholders out, as allowed under Canadian law, and take Dofasco private. That would be the end of a long battle for Arcelor that started in late November when it offered $56 a share for Dofasco. Arcelor and ThyssenKrupp kept moving the price up in a series of bids that ended when ThyssenKrupp pulled out at $68, saying the price no longer offered economic value. Arcelor is now paying $1.2 billion above its initial offer, nearly double the price that Dofasco was fetching last fall, when it hit a low of just $31.25. About KDR \| \| Home \| \| Weekly Features Archive	Weekly Weekly Features Archive
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Arcelor taking Dofasco private after nabbing 98.5 % of shares

CBC News || March 10, 2006

Related - Canadian Mergers hit $166-billion

Steelmaker Arcelor SA has won 98.5 per cent of Canada's Dofasco Inc., after a long bidding war that will cost the Luxembourg company nearly $5.6 billion.

Meanwhile, Mittal Steel Co., controlled by Indian citizen Lakshi Mittal, is trying to buy Arcelor for $22.1 billion US, and sell off Dofasco to Germany's ThyssenKrupp AG.

If all the deals in this international chess game go through, Mittal would become the world's largest steelmaker with nearly 10 per cent of global steel production and a market capitalization close to $40 billion US.

It may also change Dofasco's nationality for the third time this year. Based in Hamilton, Ont., Dofasco (TSX:DFS)started this year under a Canadian flag and replaced it with Luxembourg. India could come next, followed by Germany.

Mittal submitted a detailed business plan to the Belgian government earlier this week in hopes of winning that nation's approval for the complex deal. It expects an answer from Belgium later this month.

Mittal will then pitch its deal to France and Germany.

Article Posted at www.KnowledgeDrivenRevolution.com

Many European countries have objected to Mittal's takeover because they fear losing the benefits of competition, and their control of a fundamental industry, the steel that Arcelor makes and thousands of Arcelor jobs in Belgium and France.

In addition, several European governments own a share of Arcelor.

Meanwhile, the Canadian end of the deal is progressing slowly but steadily to completion. Arcelor announced before markets opened Wednesday that shareholders had tendered 7.97 million extra common shares since Feb. 20, when the original offer was extended.

That gives Arcelor a total of 77.5 million common shares or 98.5 per cent of the total outstanding, at a price of $71 a share.

Arcelor then plans to force the remaining shareholders out, as allowed under Canadian law, and take Dofasco private.

That would be the end of a long battle for Arcelor that started in late November when it offered $56 a share for Dofasco. Arcelor and ThyssenKrupp kept moving the price up in a series of bids that ended when ThyssenKrupp pulled out at $68, saying the price no longer offered economic value.

Arcelor is now paying $1.2 billion above its initial offer, nearly double the price that Dofasco was fetching last fall, when it hit a low of just $31.25.

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