Reuters Mittal, Arcelor merger deal reached: report Sunday June 25, 8:24 am ET
MUMBAI (Reuters) - Two Indian television channels on Sunday reported that steel makers Mittal Steel (NYSE:MT - News; Amsterdam:ISPA.AS - News) and Arcelor (Paris:CELR.PA - News) had reached a merger agreement in principle and the new company would be called Arcelor Mittal.
The channels, NDTV Profit and CNBC TV-18, cited unnamed sources for their reports.
They said the merger value was 43 euros ($53.8) per share and the papers would be signed shortly.
Arcelor board members on Sunday debated whether to back a takeover from Mittal or a rescue deal with Russia's Severstal
(CHMF.MM).
Arcelor would also pay 130 million euros to Severstal as a "fine," the channels said.
When contacted by Reuters, both Arcelor and Mittal declined to comment on the reports.
Both channels said Indian-born steel magnate Lakshmi Mittal and Arcelor chairman Joseph Kinsch would be co-chairmen of the merged company.
NDTV Profit said Mittal's stake would come down to 45 percent and the companies would retain Canadian steelmaker Dofasco Inc., recently acquired by Arcelor.