Arcelor SA has entered into definitive, binding agreements with Companhia Vale do Rio Doce (CVRD) aiming at consolidating the shareholding control of Companhia Siderúrgica de Tubarão (CST) to be financed via a share capital increase by way of warrants of approximately EUR 1 billion. Arcelor has agreed to purchase from CVRD, directly and indirectly, 869,045,672 common shares which are not subject to the CST Shareholders’ Agreement, representing 4.42% of the voting capital, and 9,381,163,397 preferred shares of CST, representing 29.96% of the non-voting capital, and other rights relating to the acquisition of common shares of CST which are the object of the call option granted by Acesita to CVRD referred to below, pursuant to the terms and conditions of the asset purchase agreement.The transfer of such assets is expected to occur on 15 September 2004. This transaction is subject to conditions precedent consistent with a transaction of this nature, including inter alia approval by relevant anti-trust authorities.
