Mittal Steel said on 4 April 2006 that it would press ahead with a hostile takeover bid for Arcelor, after its European rival stepped up defences. âTodayâs announcement by the board of Arcelor goes against the interests of its own shareholders and is an attempt to deprive them of the right to decide on the merits of Mittal Steelâs offer,â? Mittal Steel said in response. A spokesman said âMittal Steelâs offer is not dependent on the sale of Dofasco and nothing in this announcement alters our resolve or ability to proceed with our offer.” âIn terms of the proposed increased dividend, we regard any dividend distributed by Arcelor above EUR 0.80 as an advance payment on the cash consideration of our offer, which would be adjusted accordinglyâ? Mittal Steel’s spokesperson added. Mittal Steel also reaffirmed plans to cut the cash component of its bid to take account of any 2005 dividend higher than the EUR 80 cents a share which it says the market expected at the time it informally launched its mainly share offer in late January. The spokesperson said the same principle would apply now that the proposed dividend had been increased to EUR 1.85.
