September 08, 2008

ArcelorMittal to spends USD 1.72 billion for buying Carlo Tassara stake

AP reported that ArcelorMittal SA will spent about USD 1.72 billion buying back shares from its second biggest shareholder, a French investor who backed Mittal Steel's acquisition of Arcelor that combined the world's No 1 and No 2 steelmakers.

As per report, ArcelorMittal SA said it had bought back 25 million shares from Carlo Tassara International, a holding company controlled by French financier Mr Romain Zaleski. Mr Zaleski's stake in ArcelorMittal was second to the Mittal family's 43% shareholding.

He openly favored the Mittal Steel’s offer over Arcelor's attempt to stave off the bid by combining with Russian steelmaker Severstal. His support for the hostile turned friendly Mittal Steel takeover of Arcelor was part of the turnaround that finally saw the deal go ahead in July 2006 after a takeover battle.

Mr Zaleski became the biggest single shareholder in Arcelor a month earlier, overtaking the Luxembourg government by building up a 8% stake.