Arcelor shares rise as Mittal pays more to buy remaining stock

London, July 26 | Updated: Jul 27 2006, 05:30am hrs
Arcelor SA shares rose after more than 90% of shareholders accepted a takeover bid by Mittal Steel Co, triggering a law that may allow remaining investors to receive a better offer.

Under takeover laws in Luxembourg, where Arcelor is based, shareholders who havent tendered their stock to Mittal will receive a minimum of 40.40 euros in cash.

Investors may also be able to receive Mittals offer in stock and cash, and make a profit on a potential increase in the new companys value,according to Renaud Berenguier, head of hedge-fund equity sales at Aurel Leven SA in Paris.

You know you are going to get 40.40; that's your floor, Berenguier said in an interview.

There's a certain level where the Mittal stock price will be above 40.40 a share, he added.

Arcelor's shares rose as much as 2.92 euros, or 7.4%, to a record 42.50 euros, and traded at 42.10 euros at 12:26 pm in Paris. The stock has almost doubled this year.