Arcelor Mittal Appeals Against CVM Ruling

Luxembourg-based steelmaker Arcelor Mittal has said it has lodged an appeal against the ruling issued earlier this month by Brazilian securities regulator (CVM) that the company must raise its offer to minority shareholders in Brazil in order to close its merger. Last year, Netherlands-based Mittal Steel bought steel company Arcelor Brasil as part of its takeover of rival Luxembourg-based steelmaker Arcelor in a deal worth $37.3 billion. Following the merger, the CVM ruled that Mittal had to offer to buy out minority shareholders of the Brazilian unit, and rejected an appeal by Mittal. The European company offered 33.3 reais per share, well below the 51 reais per share demanded by shareholders. The regulator’s February 13 ruling proposed a price of 47.9 reais per share and gave a deadline of February 27 for the offer.