Mittal Steel bid is hostile, will meet shortly to decide on response, said Arcelor

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.