The Luxembourg Chamber of Commerce is proposing amendments to merger and acquisition laws that could force Mittal Steel to change its bid for Luxembourg based Arcelor. A document posted on the Chamber of Commerce Web site says it wants the law changed so that any company with a free float of less than 25% must pay for any acquisition of a Luxembourg company with cash. A spokeswoman for the Chamber of Commerce, which has called a press conference on 15 March to discuss the proposals, said they would be submitted to the Luxembourg Parliament 17 March 2006. Mr Michel Wurth, president of the Luxembourg Chamber of Commerce board of directors, is also deputy chief executive of Arcelor. Mittal Steel’s hostile EUR 18.6 billion bid for Arcelor has a maximum cash payment of EUR 4.7 billion around 25%. The remaining 75% will be paid in equity. Mittal Steel has a free float of 12%.
