Luxembourg-based steelmaker Arcelor SA said Friday that a takeover bid by rival Mittal Steel Co. was hostile and that the company's directors will meet shortly to take a position on the offer.
"Arcelor underlines the hostile character of this move that takes place without prior discussions or consultations between both companies," the company said in a statement.
Mittal, the world's largest steelmaker, announced an Ђ18.6 billion (US$22.8 billion) offer for its nearest rival on Friday. Shares in Arcelor surged 33 percent on the news to Ђ29.66 (US$36.25).
"Arcelor's board of directors will meet shortly to take position on this offer," the company said.
Mittal said the deal, which values Arcelor shares at Ђ28.21 (US$24.50) each, would create the world's first 100 million ton-plus steel producer with a market capitalization of US$40 billion (Ђ32.7 billion). It anticipated annual synergies of US$1 billion (Ђ816 million), reported AP.
The Americans came to realise that they would have to either leave the region or weaken their presence there. It is Russia that is filling the vacuum now