Brazilian Regulator Turns Down Steel Appeal

Brazilian securities regulator (CVM) has turned down an appeal by Netherlands-based Mittal Steel and upheld a ruling that it must offer to buy out minority shareholders of Brazilian steel company Arcelor, which Mittal bought as part of its merger with rival Luxembourg-based steelmaker Arcelor. The ruling will add up to $4 billion to the cost of the $38.3 billion merger, according to Mittal which had appealed the decision last month on the basis that the merger is one of equals and not a takeover. The latest ruling is final unless Mittal and Arcelor Brasil appeal to Brazil’s federal court.