It has been reported in a daily that steel group Arcelor could consider buying minerals group Eramet, partly controlled by the French state, in an effort to prevent hostile takeover bid by Mittal Steel. This is one possible solution being prepared behind the scenes by French officials but Arcelor’s board of directors will not necessarily decide to adopt it, said the report. It is believed that buying Eramet would also solve some political problems. "A deal with Eramet would make Arcelor bigger, it would make strategic sense and it would give the French government more ground to defend the combination out of national interest considerations," said an analyst on the terms of anonymity.
