August 22, 2008

Acindar board accepts ArcelorMittal offer

BNamericas reported that the board of directors at Argentine steelmaker Acindar has approved a USD 542 million offer from Europe's ArcelorMittal to gain 100% control of the company, a move that was expected.

Acindar in a report to the Buenos Aires stock exchange said that the company's board has voted in favor of accepting the price offered by ArcelorMittal.

In early October, ArcelorMittal announced plans to offer USD 542 million to acquire the 34.7% it does not already own in Acindar, which corresponds to 297 million Acindar shares. ArcelorMittal already controls 65.3% of the company through ArcelorMittal Belgo part of the European group's Brazilian subsidiary ArcelorMittal Brazil.

Mr Cristian Reos an analyst at brokerage Allaria Ledesma told BNamericas that "ArcelorMittal already controls the company so it's obvious that the board would accept."

Mr Roes said that the next step is for ArcelorMittal to formalize the offer that it must prepare a case to clear up competition issues and defend itself against the investigation that Argentina's securities regulator CNV launched against some members of Acindar's board. He added that "Those issues could delay the process a little but I do not believe they will have much impact on it."