Mittal Steel has issued an open letter urging Arcelor SA shareholders to resist pressure from management to merge with Severstal. The letter, published across a full page of the Financial Times, said that the proposed merger would give Mr Alexei Mordashov Severstal’s owner control over the combined company. The letter in the FT said that after an agreement with Severstal, Arcelor’s board could use a poison pill against Mittal Steel’s bid by issuing new shares to Mr Mordashov even if shareholders voted to accept Mittal Steel’s latest offer.
