Arcelor Mittal has announced, on 10 January 2007, that the respective Boards of Directors of Mittal Steel Co. and Arcelor have decided not to initiate litigation seeking to dissolve the Strategic Steel Stichting, an independent Dutch foundation, with a view to obtaining the transfer to Arcelor of the 89% of the shares of Dofasco Inc., currently held by Stichting. Arcelor Mittal indicated that the Boards of Directors reached this decision based on opinions from legal experts that the prospects for success of any such litigation against the Stichting are remote. Under a Letter Agreement, dated 26 January 2006, with ThyssenKrupp, Mittal Steel agreed to cause Arcelor to sell Dofasco to ThyssenKrupp if Mittal Steel is able to “assert effective management control over Arcelor with the ability to sell Dofasco.” In addition Mittal Steel agreed to use its best efforts to sell Dofasco to ThyssenKrupp or, if Dofasco cannot be sold due to the Stichting, to sell certain alternative assets. The Stichting’s holding of the Dofasco shares currently prevents their sale without the Stichting’s consent. By resolutions adopted respectively on 25 September and on 11 October 2006 the Boards of Directors of Mittal Steel and Arcelor formally requested that the Stichting dissolve and return the Dofasco shares to Arcelor. On 10 November 2006 the Stichting’s board of directors unanimously decided not to dissolve and to retain the Dofasco shares, thereby continuing to prevent their sale. On 22 December 2006, ThyssenKrupp initiated summary legal proceedings against Mittal Steel in the District Court in Rotterdam alleging that Mittal Steel has breached the Letter Agreement by failing to cause Arcelor to initiate legal proceedings against the Stichting. The suit seeks a Court order directing Mittal Steel to cause Arcelor to commence summary proceedings against the Stichting in the Dutch courts. A hearing on ThyssenKrupp’s suit has been scheduled for 11 January 2007 before the President of the District Court in Rotterdam.
