With M&A deals, Mittal to expand capital

Written by Agencies | London, April 27: | Updated: Apr 27 2008, 17:20pm hrs
Steel giant ArcelorMittal, whose CFO Aditya Mittal keeps an 80-page folder of potential takeovers on his desk, is seeking an equity capital expansion authorisation from its shareholders for keeping it ready for future merger and acquisition deals.

The world's largest steelmaker will ask its shareholders at an Extraordinary General Meeting (EGM) on May 13 to authorise the board to increase the company's share capital, so that it is in a position to issue shares for entering into potential growth opportunities such as merger and acquisition.

Pursuant to the effectiveness of the merger of Arcelor and Mittal Steel and the subsequent full integration of both the companies, "it has quickly appeared to be crucial to offer to the board of directors the necessary means to react with the necessary promptitude in a constant moving and globalising steel environment."

Therefore, the board considers it of paramount importance in the globalisation context of the steel industry to be in a position to issue additional shares as a mean to enter into potential growth opportunities and consequently conclude mergers, acquisitions or any other similar transactions, amongst others, by way of exchange of shares.

Recently, ArcelorMittal CEO Lakshmi Mittal's son and the company's Chief Financial Officer Aditya Mittal had mentioned in an interview to the Sunday Times about an 80-page thick folder on his desk of potential takeovers with three deals a page. "That is the number of global opportunities," he had said.