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