| L.N. Mittal has an abundant appetite for | | | | takeover offer, a move that will create the |
| acquiring steel firms. From Kazakhstan to | | | | world's largest steel entity to be called |
| Romania, from Indonesia to the US, the | | | | Arcelor Mittal. The union of the two top |
| Indian-born takeover tycoon's Mittal Steel | | | | steel makers will create a company with |
| has gobbled up steel plants and added them to | | | | nearly a 10 per cent share of global |
| his expanding empire. But not even his most | | | | production, employing more than 320,000 |
| ardent admirers bet on the success of his bid | | | | people.Arcelor chairman Joseph Kinsch said |
| for Europe's biggest steel maker Arcelor | | | | his board unanimously backed the new offer. |
| S.A.Except perhaps Mittal himself. | | | | "We concluded Mittal Steel's was a better |
| Luxembourg-based Arcelor had tried everything | | | | offer than that of Severstal," he said. Even |
| to fend off the metal maven. At first there | | | | the politicians were saying cheese. |
| was shock and confusion in the European ranks | | | | Luxembourg economy minister Jeannot Krecke |
| as the French, who hold stake in the company, | | | | told reporters: "We are very happy with the |
| told Mittal that his bid had no chance. | | | | situation."Mittal is not quite the takeover |
| Luxembourg politicians said they would pass | | | | shark he has been portrayed as. According to |
| legislation to make his bid illegal.In much | | | | him, "I have seen the steel industry for the |
| of Europe, Mittal's move was viewed as a | | | | over 30 years," he says. "It has become |
| rough attempt by "new" India to take on "old" | | | | increasingly clear to me that there is too |
| Europe. French finance minister Thierry | | | | much flab and fragmentation and too little |
| Breton accused Mittal of having "a grammar | | | | attention to lowering cost of production. |
| problem". Luxembourg Prime Minister | | | | Other industries like aluminum and auto have |
| Jean-Claude Juncker was ready for war: "This | | | | seen the virtues of globalisation. Now it is |
| hostile bid by Mittal Steel calls for a | | | | time for steel."With Arcelor in his pocket, |
| reaction that is at least as hostile." | | | | there aren't too many targets left for the |
| Arcelor CEO Guy Dollé worked hard to | | | | tycoon but Mittal is unlikely to lie low for |
| encourage public opposition, dismissing | | | | long. He may not court the media but he has |
| Mittal as a low-grade operator specialising | | | | managed to make headlines. Two years ago he |
| in buying up obsolete installations at low | | | | acquired the UK's Kensington mansion, said to |
| cost.When Mittal found - totally unexpected - | | | | be the world's most expensive home, from |
| support from Indian politicians, who dared | | | | Formula One racing's Bernie Ecclestone. In |
| the West to play foul in the steel super | | | | 2004, he made headlines when he threw a $70 |
| bowl, Arcelor entered into a last-ditch | | | | million wedding bash for daughter Vanisha. It |
| strategic tie-up with Russia's Severstal to | | | | included an engagement ceremony at Paris' |
| thwart Mittal. But the Europeans had got it | | | | Tuileries Gardens featuring an opera and |
| all wrong: when the world's third richest man | | | | banquet at the French royal palace at |
| - after Bill Gates and Warren Buffet - | | | | Versailles.When Mittal first popped up on the |
| proposes marriage, you don't turn him down. | | | | radar screen of the international media after |
| Mittal was prepared to bid higher. In June, | | | | acquiring Chicago-based Inland Steel in 1998, |
| Mittal, whose fortune is estimated at $27 | | | | the Wall Street Journal called him the |
| billion, hiked his offer by 10 per cent to an | | | | Carnegie from Calcutta. He became several |
| eye-popping $32.4 billion. Despite all the | | | | times bigger than the 103-year-old US's steel |
| sabre-rattling, France and Luxembourg could | | | | legacy of Andrew Carnegie with his |
| do little to block the deal as 85 per cent of | | | | acquisition of Ohio-based International Steel |
| the company is traded freely on the stock | | | | Group in a deal worth $17.8 billion.Steel |
| market.In late June, the Arcelor board went | | | | analysts round the world are hoping that his |
| into a marathon huddle. Ending months of | | | | juggernaut keeps rolling on. |
| hostility, Arcelor decided to accept the | | | | |