Tata Steel after Corus

Acquisition

Tata Steel has acquired the 5th largest steel producer of the
world, Corus, scoring over Brazil's CSN at $12.15 billion
(around Rs 55,000 crore) in cash, making it the largest
acquisition by an Indian company and the second largest in the
industry after Mittal Steel's $38.3 billion acquisition of Arcelor.
Tata's bid of 608p per share, which beat a price from CSN of
603p, was 33.6 per cent higher than its original bid. By some
measures, it exceeded the price paid in other recent industry
deals, such as Mittal Steel's acquisition of Arcelor last year.
In its centenary year of 2007, Tata Steel, a subsidiary of Tata
Group, India's largest private sector company, was aiming to
touch the production figure of 7 million tonnes but the acquisition would bring the total capacity
of the group to around 23 million
tonnes, making it the fifth largest steel producer in the world. The group was in look out for big
overseas acquisitions as the
Indian steel producers have limited-to-no options to jeopardize their bright future by offering its
stake to competitors, it would be
nothing short of firing at ones own toe, especially when the economy is booming and the potential
for steel producers is
overwhelming. At 8 per cent of GDP growth, Indian steel producers are expecting a bright future
ahead and hence leaves little
chance for mergers and acquisitions between two giants from within the country. For 2015, the
production target is set at 30
million tonnes. Tata Steel produced about 5 million tonnes of steel the last financial year ending
March 2006.
Sensing the need, Tata Steel started scouting for overseas presence through greenfield or
brownfield projects early this
century. The company's global journey began with the announcement of its greenfield ferro
chrome plant in South Africa in 2003
at Richards Bay as the possible location. The major aim of this plant was to procure raw material
for its India-based stainless
steel plant. The plant is set to be completed in two phases, first of which is to begin commercial
production by early 2008. The first
phase of the ferro chrome plant in South Africa would have a capacity of 0.12 million tonnes with
an investment of Rs 3000
million. The company has decided to set up two furnaces with a capacity of 60,000 tonnes.
Looking at the success of L N Mittal
through mergers and acquisitions, Tata Steel recently announced its interest in overseas
acquisition especially in Europe and
USA. Timely remark by Corus' officials expressing their interest in China, Brazil and India for
cheaper steel induced Tata Steel to
cash in on the opportunity and decided to offer a bid for Corus. As Corus was also seen interested
in setting up a modern steel
distribution network in India, Tata Steel wanted to leave no stone unturned to mark its European
presence.
Tata Steel is planning a 50-50 balance between greenfield facilities and acquisitions for future
growth. To possess the 100-
million tonne capacity by 2015, the company is looking at adding another 29 million tonne
through the acquisition route. Tata
Steel's acquisitions all of them overseas add up to 21.4 million tonne, with Corus accounting for
18.2 million tonne, Natsteel two
million tonne and Millennium Steel 1.2 million tonne. The company would focus on its greenfield
projects now. The company has
lined up a series of greenfield projects in the country and outside. The projects will add 6 million
tonne in Orissa, 12 million tonne
in Jharkhand and 5 million tonne in Chhattisgarh. In the international market, the company
recently received approval for
setting up 3 million tonne plant in Iran and there are plans to set up 2.4 million tonne capacity
plant in Bangladesh, which has hit
a roadblock. This is besides the expansions at the existing plant in Jamshedpur. It will not be
possible to expand at Jamshedpur
beyond 10 million tonne. The Corus acquisition would not affect the company's ongoing
expansion plans.

MITAL- ARCELOR Versus TATA-CORUS

Tata Steel has acquired the 5th largest steel producer of the
world, Corus, scoring over Brazil's CSN at $12.15 billion
(around Rs 55,000 crore) in cash, making it the largest
acquisition by an Indian company and the second largest in the
industry after Mittal Steel's $38.3 billion acquisition of Arcelor.
Tata's bid of 608p per share, which beat a price from CSN of
603p, was 33.6 per cent higher than its original bid. By some
measures, it exceeded the price paid in other recent industry
deals, such as Mittal Steel's acquisition of Arcelor last year.
In its centenary year of 2007, Tata Steel, a subsidiary of Tata
Group, India's largest private sector company, was aiming to
touch the production figure of 7 million tonnes but the acquisition would bring the total capacity
of the group to around 23 million
tonnes, making it the fifth largest steel producer in the world. The group was in look out for big
overseas acquisitions as the
Indian steel producers have limited-to-no options to jeopardize their bright future by offering its
stake to competitors, it would be
nothing short of firing at ones own toe, especially when the economy is booming and the potential
for steel producers is
overwhelming. At 8 per cent of GDP growth, Indian steel producers are expecting a bright future
ahead and hence leaves little
chance for mergers and acquisitions between two giants from within the country. For 2015, the
production target is set at 30
million tonnes. Tata Steel produced about 5 million tonnes of steel the last financial year ending
March 2006.
Sensing the need, Tata Steel started scouting for overseas presence through greenfield or
brownfield projects early this
century. The company's global journey began with the announcement of its greenfield ferro
chrome plant in South Africa in 2003
at Richards Bay as the possible location. The major aim of this plant was to procure raw material
for its India-based stainless
steel plant. The plant is set to be completed in two phases, first of which is to begin commercial
production by early 2008. The first
phase of the ferro chrome plant in South Africa would have a capacity of 0.12 million tonnes with
an investment of Rs 3000
million. The company has decided to set up two furnaces with a capacity of 60,000 tonnes.
Looking at the success of L N Mittal
through mergers and acquisitions, Tata Steel recently announced its interest in overseas
acquisition especially in Europe and
USA. Timely remark by Corus' officials expressing their interest in China, Brazil and India for
cheaper steel induced Tata Steel to
cash in on the opportunity and decided to offer a bid for Corus. As Corus was also seen interested
in setting up a modern steel
distribution network in India, Tata Steel wanted to leave no stone unturned to mark its European
presence.
Tata Steel is planning a 50-50 balance between greenfield facilities and acquisitions for future
growth. To possess the 100-
million tonne capacity by 2015, the company is looking at adding another 29 million tonne
through the acquisition route. Tata
Steel's acquisitions all of them overseas add up to 21.4 million tonne, with Corus accounting for
18.2 million tonne, Natsteel two
million tonne and Millennium Steel 1.2 million tonne. The company would focus on its greenfield
projects now. The company has
lined up a series of greenfield projects in the country and outside. The projects will add 6 million
tonne in Orissa, 12 million tonne
in Jharkhand and 5 million tonne in Chhattisgarh. In the international market, the company
recently received approval for
setting up 3 million tonne plant in Iran and there are plans to set up 2.4 million tonne capacity
plant in Bangladesh, which has hit
a roadblock. This is besides the expansions at the existing plant in Jamshedpur. It will not be
possible to expand at Jamshedpur
beyond 10 million tonne. The Corus acquisition would not affect the company's ongoing
expansion plans. US was clinched at nearly $1,000 a tonne.

January 27, 2006

Mittal makes $22 bn offer for Arcelor

Steel tycoon Lakshmi Mittal launched a Euro18.6 billion (over $22 billion) takeover bid for Arcelor of France
on Friday, a move that would lead to the merger of the world's two biggest steel companies.

According to a release on the website of Mittal Steel, the offer values each Arcelor share at Euro 28.21,
which represents a 27 per cent premium over the closing price and all-time high on Euronext Paris of
Arcelor shares on 26 January 2006.

The offer values Arcelor at an equity value of Euro18.6 billion (over $22 billion) on a fully diluted basis, the
release said.

Under the terms of the offer, Arcelor shareholders will receive four Mittal Steel shares and Euro 35.25 cash
for every five Arcelor shares.

Lakshmi N. Mittal, chairman and CEO of Mittal Steel, said, "The last ten years have seen a major shift
towards consolidation of the steel industry, helping to create sustainable value for all stakeholders. Both
Mittal Steel and Arcelor have been at the forefront of this consolidation and share a similar vision for the
future of our industry. This combination accelerates this process and leaves us uniquely positioned to
benefit from the opportunities created.

"We believe the offer provides a very attractive premium and has been structured so that Arcelor
shareholders have the opportunity to participate in the exciting growth potential of the combined company,
whilst also receiving a generous cash element. We would encourage them to consider the merits of our
compelling offer and play a part in the future of the world's only global steel company."

February 14, 2006

Mittal's nationality irrelevant: EU
Amid the raging controversy over Mittal Steel's takeover bid for rival Arcelor, the European Union on
Tuesday said it was against racial discrimination and the issue should be treated only on commercial
considerations.
"The EU is of a clear view that nationality in such cases is not relevant and it should be decided according to
the laws in place and commercial merits," European Commission director general (trade), David O'Sullivan
said in New Delhi [ Images].

"It is unfortunate that allegations of racial discrimination have crept in the issue," he added.

An expert's view on Mittal's bid for Arcelor

A 'samurai poison pill' against Mittal

However, he made it clear the EU would be concerned if there were any violations of competition rules and
the takeover created a monopoly kind of situation.

The Netherland-based Mittal Steel has made a $22.3 billion bid for Luxembourg-based Arcelor, which would
create a steel company with an output three times bigger than its three nearest rivals combined.

The bid has sparked objections from the governments of France [ Images ], Luxembourg and Spain and
from labour unions, who are worried about job losses even though Mittal has assured that no worker would
lose job and cited that his operations in other countries had not resulted in retrenchment.

The issue is also likely to figure during French President Jacques Chirac's [ Images ] visit to India early next
month.

March 10, 2006

L N Mittal is the richest Indian

Steel tycoon Lakshmi Mittal [ Images ] is the richest Indian and Microsoft [ Images ] Corporation Chairman
Bill Gates [ Images] with an estimated net worth of $50 billion retains his title as the richest man in the world
for the twelfth consecutive year.

According to the Forbes magazine annual survey, Gates fortune increased 7.5 per cent from $46.6 billion
last year.

India, whose BSE Sensex market was up 54 per cent in the past 12 months, is home to 10 new billionaires,
more than any other country besides the US. Notable newcomers include Kushal Pal Singh, India's biggest
real estate developer; Tulsi Tanti, a former textile trader whose alternative energy company owns Asia's
largest wind farm and Vijay Mallya [ Images ], the liquor tycoon behind Kingfisher beer.

The World's Top Ten Billionaires

# Name Net worth in

$ billion
1 Bill Gates 50.0

2 Warren Buffet 42.0

3 Carlos Slim Helu 30.0

4 Ingvar Kamprad 28.0

5 Lakshmi Mittal 23.5

6 Paul Allen 22.0

7 Bernard Arnault 21.5

8 Prince Alwaleed Bin Talal 20.0

Alsaud

9 Kenneth Thomson & family 19.6

10 Li Ka-shing 18.8

The magazine said strong markets around the world contributed to the increase in wealth and the total net
worth of the list jumped to $2.6 trillion.

Gates is followed by 75-year old investor Warren Buffett [ Images ] of the United States with net worth of $42
billion and Mexican telecom magnate Carlos Slim Helu with $30 billion and Ingvar Kamprad of Sweden,
founder of Ikea, the world's biggest home furnishing retailer, with $28 billion.

Slideshows:
Non-resident Indian steel tycoon Mittal finds fifth place among the world's richest with a net worth of more
than $20 billion. The 55-year-old dropped two places to fifth with $23.5 billion, down $1.5 billion.

Azim Premji [ Images ], who owns 82 per cent of the New York listed Information Technology giant Wipro
[ Get Quote ] is second richest Indian with an estimated net worth of $11 billion.

Mukesh Ambani [ Images ] with net worth of $7 billion, army officer turned property baron Kushal Pal Singh
($5 billion dollars), Sunil Mittal [ Images ], who built his Bharti Group into India's largest mobile phone
operator with 14 million customers ($4.9 billion) and Kumar Birla ($4.4 billion) are among those who find
place among the top ten richest persons in India.

Others include Tulsi Tanti, who has built Asia's largest wind energy farm, Pallonji Mistry ($3.3 billion),
biggest shareholder in Tata Sons, and Anurag Dishkit ($3.1 billion) who owns 30.4 per cent of Internet
Casino company which went public in London [ Images ] in June last.

Forbes list of 40 richest Indians shows that a person had to have a net worth of $590 million, up from $305
million in the previous year, to make the grade. It has twenty-seven billionaires, more than the double of the
count of the previous year.
Notable newcomers include Tulsi Tanti, Vijay Mallya, the liquor tycoon behind Kingfisher beer, Kushal Pal
Singh, India's biggest real estate developer, and Anurag Dikshit, another online gaming mogul, who made
his fortune when he and two Americans took their PartyGaming poker company public in London last June.

Seven newcomers join the ranks, including four who took their companies public in 2005. They include
former airline agent Naresh Goyal, who runs Jet Airways [ Get Quote ], the country's leading domestic airline
and Vikrant Bhargava, executives at Internet casino outfit PartyGaming.

Forbes Asia also added two 'low-profile,' privately held fortunes: Kushal Pal Singh, whose DLF group is
India's biggest real estate developer; and Indu Jain, the matriarch of India's most powerful media house,
Bennett and Coleman.

All returning Indian rich listers saw their fortunes rise. Tycoons with telecom interests did particularly well,
including Sunil Mittal, the Ruia brothers and Uday Kotak.

Making peace among fighting family members was another theme, the magazine said. Feuding siblings
Mukesh and Anil Ambani [ Images ] announced plans to part ways in June after their mother brokered a
peace settlement, a move that Forbes Asia estimates makes both men much richer.

So, too, did Rahul Bajaj and his younger brother Shishir. The stock of Bajaj Auto [ Get Quote ], which Rahul
will still control, has doubled in the past year.

Pharmaceutical tycoons, Forbes said, didn't do quite so well. While seven returned to the list, three--Dr.
Reddy's Laboratories' Anji Reddy, Zydus Cadila's Pankaj Patel and Lupin's Desh Bandhu Gupta--dropped
off because their stocks underperformed India's red-hot stock market.

Twelve people return to the Forbes magazine's list. 39 people depart from it. Seven fortunes were broken up
among family members, usually siblings, adding 15 individuals to the ranks.

Martha Stewart, who joined the billionaire ranks last year with a net worth of $1 billion is no longer on the
list.

Seventy eight women make it to the list, ten more than last year, though only six are self-made. Hind Hariri,
daughter of slain leader Lebanese Prime Minister Rafik Hariri, who is eight months younger than Germany's
[ Images ] Prince Albert von Thurn und Taxis, is, at 22, the list's youngest member.

In the magazine's inaugural ranking of the world's richest people 20 years ago, there were some 140
billionaires.

Just three years ago their number had risen to 476.

This year the list is a record 793. They're worth a combined $2.6 trillion, up 18 per cent since last March.
Their average net worth is $3.3 billion.

June 12, 2006

Arcelor rejects Mittal's new offer

Steel giant Arcelor on Monday rejected the 25 billion euros unsolicited acquisition bid by Mittal Steel but
agreed to meet officials of the world's largest steel maker to review its proposal to further improve the offer.
The Arcelor board "unanimously" rejected the offer, saying it is "inadequate as it continues to undervalue
Arcelor" and recommended "shareholders support the proposed

merger with the Russian steel group Severstal and set the price per share of the self-tender at Euro 44 - six
euros more than offered by Mittal," Arcelor said in an official statement.

Luxembourg-based steel giant decided not to commence "such self tender offer until after the publication of
Mittal Steel's offer results while mandating the group management board to meet with Mittal Steel in order to
review its proposal to further improve its offer.

Although there was no formal word from the Mittals, there were indications that NRI steel tycoon L N Mittal
[ Images ] might submit a revised offer. Pitching for the deal with the Russian Steel group, the Arcelor
board, which met in Luxembourg on Sunday, also asked its shareholders to support the Severstal
transactions at the general body meeting on June 30.

Stating that Severstal transactions were more "attractive alternative from a strategic, financial and social
point of view," Arcelor took a dig at Mittal Steel, saying that "the revisions of Mittal Steel's offer announced
on May 19, 2006 demonstrate that its initial offer undervalued Arcelor.

"Notwithstanding the increase in the consideration offered by Mittal Steel, the Arcelor Board of Directors
believes that this offer is still inadequate as it continues to undervalue Arcelor," the statement added.

Dwelling on the reasons leading to the rejection of Mittal Steel's offer, Arcelor said its 34 per cent increase
offer was required to re-align with the bid initially offered by the company due to its under-performing share
price vis-à-vis Arcelor's share price.

Moreover, Mittal Steel's offer does not take into proper account Arcelor's operating and financial results for
2005, which exceeded market expectations.

The multiple by the Mittal Steel's valuation of Arcelor does not show a control premium when compared with
trading multiples of comparable companies, it said.

"The multiple by Mittal Steel's valuation remains significantly lower than multiples in the steel sector," the
statement said.

Arcelor last month said it agreed to buy most of Severstal, Russia's [ Images ] third-biggest steelmaker in a
Euro 13 billion ($16.4 billion) transaction, which would give Russian tycoon Alexei Mordashov up to 38 per
cent of the combined company.
Mittal's offer closes on July 5 to Arcelor's shareholders in Belgium, France [ Images ], Luxembourg, Spain
and the United States. Arcelor said the Severstal transaction would create the world's steel champion and
the most profitable steel company.

"The Severstal transaction represents a key step in implementation of Arcelor's value plan and growth
strategy and it is consistent with its strategic vision, business model and corporate values."

Arcelor vs Mittal: Further talks likely

Four months after NRI tycoon Laxmi Narayan Mittal [ Images ] made a hostile bid for Luxembourg-based
Arcelor, managements of the two steel giants have held negotiations and will meet again soon for
substantive talks despite Mittal Steel's insistence it would not raise its euro25 billion bid offer.

The breakthrough for the talks comes after Arcelor's supervisory board instructed its management board to
negotiate with Mittal on Tuesday.

"We have moved from a very negative involvement to a positive involvement. We hope this kind of dialogue
can lead to a satisfactory conclusion for the shareholders of Arcelor as well as Mittal Steel," Mittal said.

He had already made a compelling offer to Arcelor's shareholders and had no plans to offer more, he said.

However, advisers said there could be some room for further unspecified improvements to corporate
governance, which could persuade Arcelor.

News of an early meeting came as Mittal released details of the company's business plan, which contains a
very aggressive earnings target, 70 per cent higher than that achieved in 2005.

Mittal expects underlying profits of $9.9 billion within two years and predicts steel prices to rise by $30 to
$60 a tonne within six months.

Reacting to the Mittal's projections, Arcelor said the outlook was unreasonably bullish.

Under the same assumptions, Arcelor said its forecast for its own profits in 2009 would rise from euro7
billion to euro8.9 billion.

"Arcelor is convinced that it is one of the most resilient global steel producers. However, in order to deliver
on its commitment to the market, it has purposely applied reasonable and conservative assumptions in its
value plan," the company said in a release on Wednesday.

Mittal said he would make himself available for the talks if Arcelor Chairman Joseph Kinsch and its Chief
Executive Guy Dolle attended the talks.

Mittal and Dolle are yet to discuss the offer. But there are now just three weeks left before the bid deadline.

June 21, 2006

No one can match Mittal-Arcelor union: L N Mittal

Lakshmi N Mittal, Chairman & CEO, Mittal Steel Company, the world's largest steel producer, said on
Tuesday that the proposed Mittal-Arcelor deal is going to be a major step towards further consolidation of
the steel industry that is needed for its future.

He said that the future health of the growing steel industry depended on further consolidation and the
Arcelor-Mittal deal was the most important aspect of that.

"They are complimentary to each other. They have a lot of synergies. They share the same region. I think no
other combination can match Mittal Steel and Arcelor for the future of the industry. We need more
companies to consolidate," Mittal said at a steel industry conference organised by American Metal Market
and World Steel Dynamics in New York.

Mittal, who was the highlight speaker at the annual conference, was loudly cheered by the members of the
audience as he took to the podium.

"We are not working for financial institutions, we are working for ourselves and for our customers and
shareholders," the doyen of the steel industry said amid cheers.

"If we can show them reduced volatility, show them steady and balanced growth and supply, we do not need
futures contract," Mittal said, referring to the London [ Images ] Metal Exchange's bid to develop steel
markets future contracts.

In response to a question Mittal said that the Mittal-Arcelor combination is going to be a unique one in the
steel industry from the points of view of the company and shareholders. "They are really complimentary to
each other, there are a lot of synergies and they share the same vision," he said.

"No other combination can match the Mittal Steel-Arcelor combination. This is what I have been trying to
convince for the last five months and I hope that you are the jury, the 1,300 jurors sitting here who can really
decide what is better for the steel industry, for your shareholders and for the future of the next generation,"
he said.

"Continued consolidation is taking us toward the stability and sustainability we desire. The steel industry is in
the early stages of a renaissance that will see it move towards creating stability and sustainability," he said.

Looking at the huge outcome of the conference which was attended by over 1300 people from the steel
industry, Mittal congratulated the sponsors.

"We must surely also congratulate them for the hat-trick they have managed to pull off, getting Guy Dolle,
Alexei Mordashov and myself into the same room on the same day!"
Mittal outlined his vision for the model of the future, saying that he was optimistic about the outlook for the
industry. He said that the challenge now was to ensure that this industrial transformation translates into
investment renaissance.

Speaking to the PTI after his highlight speech, Mittal made it clear that the talks with Arcelor were due to last
a few more days.

He said he and Guy Dolle, CEO of Arcelor, who spoke to the audience and shareholders in the same room
at different times, did not have plans to meet that day regarding the

amalgamation.

"There is no meeting at all planned, however I am very optimistic about its merger in the near future. Only
the Mittal Steel-Arcelor combination would be a truly transformational deal for the steel industry."

He left it to the shareholders, saying: "You can decide what is best for the future of the industry."

"Shareholders must be at the heart of this business," Mittal said. "That is what my efforts are focused on
achieving."

Analysts agree Mittal is making progress, pointing to Arcelor's decision to cancel a shareholder meeting
scheduled for this week amid shareholder concern over the company's tactics.

Mittal Steel and Arcelor intensified their campaign to win over shareholders with rival advertisements in
European newspapers aimed at influencing next week's vote on Arcelor's proposed link-up with Russia's
[ Images ] Severstal.

Mittal Steel, meanwhile, took out full page advertisements in the French national press, The Financial
Times, The Wall Street Journal and The International Herald Tribune, to present its case to Arcelor
shareholders.

Arcelor also, to win over shareholders, in its own ad in Le Monde and other papers, said, "Take the
profitability of the Mittal Steel project, add 23 per cent and you have the Arcelor-Severstal project."

Lakshmi Mittal [ Images ] of Mittal Steel and Guy Dolle of Arcelor each spoke at an industry conference in
Manhattan, with attendees buzzing about the bid and what it meant for the future of the steel industry.

At a speech during lunch, Dolle said concentrating an industry is not "the magic path" to higher profits. He
said: "Size is not the magic driver toward value creation," and "consolidation differs from amalgamation."

He added that "the Arcelor way" was based on value, not volume. "Mittal is very optimistic about India vs
China growth. However, there is a difference that keeps India behind China today and that is its
infrastructure and administrative differences. In China things happen fast," said Dolle.

"Transformation will count for little if we cannot persuade shareholders that the industry leaders can deliver
the sort of sustained financial performance they desire," he said.
June 23, 2006

Mittal, Arcelor may reach merger deal

After steadfastly resisting Mittal Steel's hostile bid since January, rival Arcelor looks closer to agreeing to the
takeover, as the two sides held discussions that were described as advanced and constructive.

"Talks are ongoing and constructive" and some parts of the offer "in principle have been agreed," Sudhir
Maheshwari, Mittal's managing director (business development and treasury) told Bloomberg on Friday.

The two firms will continue talks on Mittal's $30 billion offer on Friday and Saturday, amid speculations that
Mittal is all set to clinch the deal, company sources said.

Arcelor chief executive officer Guy Dolle, who had in the past tried to fend off Mittal's hostile bid, is believed
to be moving closer to Mittal as shareholders objected to a strategy that envisaged an agreement to
combine with Russia's [ Images ] Severstal.

Arcelor's board is scheduled to meet June 25.

Mittal wants to buy Arcelor to cut raw material costs and increase bargaining power with customers to create
a steelmaker three times bigger than any rival.

Shares of Mittal rose 30 cents to 26.29 euros in Amsterdam. Shares of Arcelor are suspended in Paris
pending clarification on its talks with Mittal and Severstal.

Mittal might increase its bid by 3 billion euros, the Financial Times said, citing people familiar with the deal.
That would value each Arcelor share at 40.62 euros.

The Arcelor CEO, who is in New York, demanded a higher bid from Lakshmi Niwas Mittal, thereby indicating
that he may yet favour an agreement.

Arcelor has valued its accord with Severstal at 44 euros a share

Arcelor buzz ups steel prices

As reports trickled in about global steel majors Mittal Steel and Arcelor getting ready to tie a knot, domestic
steel companies appear to be cheering the development as their share prices jumped on the Bombay stock
Exchange [ Images ].

After opening on a subdued note and keeping in the red through the morning trade, in-line with the broader
market movements, steel scrips bounced back sharply from their lower levels by the midday trade and
settled with gains of up to 7 per cent at the end of the trading session.

World's largest steel maker Mittal Steel said on Friday it was pleased with the developments related to its
takeover bid for Arcelor, while fuelling speculations that the deal might finally close soon after a five-month
bidding war.

According to a French newspaper report, Arcelor's board of directors is scheduled to meet on June 25 and a
final decision is likely to be announced after the meeting.

There are reports about Mittal Steel raising its offer for the world's second largest steel maker Arcelor to
$30.7 billion from $23 billion.

An eventual merger of Mittal Steel and Arcelor is expected to lead to further firming up in global steel prices
due to consolidation in the industry.

The metal index shot up by 217.45 points to 8,292.84, with Tata Steel [ Get Quote ], also a Sensex
candidate, was up by Rs 22.85 to Rs 512.25, Sterlite surged by Rs 7.56 to Rs 394.30, Sail [ Get Quote ] by
Rs 5 to Rs 79.25, Sesa Goa [ Get Quote ] Rs 80.40 to Rs 1,136.85, Maharashtra Seamless [ Get Quote ] Rs
12.50 to Rs 317.65, JSW Steel [ Get Quote ] Rs 11.80 at Rs 269.80 and Jindal Steel by Rs 10 to Rs
1,404.20.

June 25, 2006

Arcelor, Mittal decide to merge: Reports

European steelmaker Arcelor and the L N Mittal [ Images ] Group have decided to merge in
principle, according to reports on Sunday.

Under the agreement, the stake of the Mittal Group will reduce to 45 percent and the merged firm
will be called Arcelor Mittal. While Lakshmi N Mittal will be the co-chairman, the majority of the
board will be from Arcelor. Joseph Kinsch is said to continue to be chairman.

Arcelor may have to pay nearly 130 million Euros as a fine to Russian Serverstal, for breaching
the contract.

The deal might be inked on June 26.

A meeting of the Arcelor board is still on and more details are awaited.

June 26, 2006

Congratulate L N Mittal, the Sultan of Steel

The world seems happy at the Mittal Steel-Arcelor merger. Barring a few like Severstal, Arcelor's former
Russian suitor, which has said that it will improve its offer to the Luxembourg-based steel giant to thwart
Mittal's move.

Meanwhile, various industry associations in India and abroad have expressed delight at the successful
Arcelor-Mittal negotiations. Indian industry bodies have said they are proud of L N Mittal's leadership which
has set a new benchmark in a globalising world and raised the banner of the power of Indian business.

Do you think Mittal's takeover will boost Indian entrepreneurship? Tell us. Congratulate L N Mittal on the
acquisition of Arcelor.
Arcelor-Mittal: Some tricky issues remain

After months of wrangling and drama, the Arcelor-Mittal deal is finally done. CNBC-TV18 reports on how
the new entity is likely to fare.
A stormy courtship seems to have finally ended in an alliance, and if the shareholders endorse it on June
30, the marriage will be formalised. The new Arcelor-Mittal entity will produce nearly 10 per cent of the
world's steel. That puts Arcelor-Mittal in a very strong position.

Arcelor accepts Mittal's bid

The two biggest steel makers will not need to undercut each other, but focus entirely on growth and
increase in margins. But that's one part of the story. This alliance might not quite be a bed of roses. Most of
the directors on the new company's board come from Arcelor and they were not quite in favour of Mittal.

That means Mittal might face problems. The price Mittal apparently offered for his 45 per cent stake may
also skew valuations that may be difficult to justify.

Mittal steals the steel show

Jason Hunter of Steel Business Briefing said, "This may be attractive to some other financial investors, but
certainly for the individuals who are looking to gain additional long term values to their investments, this may
not be quite as attractive as they were hoping."

The combined entity will have 61 plants in 27 countries and some 320,000 employees all over the world.
Industry observers say that shedding excess staff and integrating the two management teams might pose a
problem.

Jason Hunter adds, "The difficult thing between the two companies is going to be the integration of the
management team, both in Europe and in North America and other regions, due to the hostilities that had
been going on over the last five to six months. Some of them have been fairly aggressive on the comments
from both sides.

Shareholder approval on June 30 is likely to be a mere formality. Arcelor-Mittal will look to enhance its value
to shareholders and live together, happily ever after.

Severstal keen to outbid Mittal for Arcelor

Arcelor's former Russian suitor Severstal has said it would improve its offer to the Luxembourg-based steel
giant to thwart a partnership with Mittal Steel, whose bid was accepted by Arcelor Board on Sunday.

In a statement, Severstal said it was amazed that its representatives were not invited to attend Sunday's
meeting of Arcelor Board and declared that it is going to improve its bid ahead of the shareholders meeting
on June 30.

Severstal, which had earlier announced its merger with Arcelor, felt slighted at not being given a chance to
respond.

According to a Russian daily Izvestia, Alexei Mordashov, who controls Severstal, has forged an alliance with
Roman Abramovich, the owner of UK-based football club Chelsea to offer a higher price for Arcelor shares.

ABN AMRO Bank has reportedly offered the required money to the Rusian steel-maker.

One of the business dailies Vedomosti has pointed out that Mordashov's alliance with Abramovich would be
his last chance to woo Arcelor's shareholders.

Another business daily Kommersant argued that ahead of the G-8 Summit in St. Petersburg next month,
Arcelor has seriously complicated EU-Russia relationship. It reminded that President Vladimir Putin
[ Images ] has linked the ratification of Energy Charter, much sought by the European Union, to transparant
access to Russian companies. Arcelor

SA Board announced last evening the acceptance of Mittal's bid, which was improved by 10 per cent.

"We have an agreement to merge that ties us to the board of directors of Arcelor... We are very surprised
that the board did not invite us to discuss our revised offer, and did not give use the opportunity to respond,
as we had requested," AFP said quoting statement by Severstal.

On May 26, Severstal and Aercelor announced with great fanfare that the two companies would merge. The
Russian firm said on Sunday that, in light of the 'legal agreement' it has with Arcelor, it was studying 'all its
options.'

Mittal, Arcelor merger not to affect India venture

The euro27.5-billion merger of the world's two largest steel companies, Mittal Steel and Arcelor SA, is
unlikely to impact the former's plans to invest $9 billion in its first greenfield project in ore rich Jharkhand.

Mittal Steel signed an agreement with the Jharkhand government last October to pump in $9 billion into a
12-million tonne project -- the second largest FDI in the steel industry -- following South Korean firm Posco's
$12-billion investment plan for Orissa.

Reacting to media reports that Mittal Steel and Arcelor are close to an agreement on the merger proposed
by Mittal Steel Chairperson L N Mittal [ Images ] in January, Mittal Steel Jharkhand Pvt Ltd Chief Executive
Sanak Mishra said the merger would have no bearing on the Jharkhand project.

"This is a commitment made by Mittal Steel by signing a memorandum of understanding and the merger is
unlikely to impact these plans in any manner. The merger is likely to restrict itself to agreements on overall
business plan, shareholding patterns and board structure, and the Jharkhand project is not on the agenda,"
Mishra said.

"It is a big opportunity for us in India and the latest development will not change that," he added.

Though there were reports that the newly-merged entity was likely to be renamed as Arcelor Mittal, the
name of the Indian arm of the company would remain unchanged as it was already incorporated as a
separate company, Mishra also said.

One of the conditions put by the Jharkhand government on Mittal Steel while signing the agreement was
that a new company would have to be floated for the project.

Arcelor accepts Mittal's bid

Ending months of hostility, Arcelor SA has announced acceptance of India-born L N Mittal [ Images ] group's
takeover bid, improved by 10 per cent to euro25.9 billion ($32.4 billion), a move that will create the world's
largest steel entity.

Announcing the decision, Arcelor Chairman Joseph Kinsch told reporters that his Board has unanimously
backed a new takeover offer from Mittal Steel. "We concluded that Mittal Steel's was a better offer than that
of Severstal," he said.

The decision preferring Mittal to Russian steel giant Severstal, with whom Arcelor had entered into a
strategic tie-up perceived as a last ditch effort to thwart Mittal's bid, was taken after a marathon meeting of
the board at the company's headquarters.

The merged entity will be called Arcelor Mittal, Bloomberg quoted Kinsch as saying.

He said the board will recommend the new offer of Mittal Steel, which will now be placed before
shareholders for approval.

Luxembourg Economy Minister Jeannot Krecke told reporters: "We are very happy with the situation".

Bloomberg quoted Krecke as saying that Luxembourg, which holds 5.6 per cent stake in Arcelor, will be a
winner in the transaction.

While weighing Mittal's offer, which was till recently considered as unfriendly and hostile by its acquisition
target, the Arcelor board also discussed the merger with Russia-based Severstal.

Though the Arcelor management gave a thumbs-up to the offer from the Russian company controlled by
Alexei Mordashov, many shareholders opposed it.

Arcelor will now have to pay Severstal over euro130 million for breach of contract.
Mittal had launched his bid to takeover Arcelor on January 27.

The new deal values Arcelor shares at euro40.37 a share.

The company's scrip commanded euro26 on January 26, a day before Mittal came out with his bid.

A merger of the two top steel makers will create a company with nearly a 10 per cent share of global
production, employing more than 320,000 people.

Mittal steals the steel show

The magic of LN Mittal's persistence seems to have worked! Arcelor board has unanimously recommended
Mittal's offer of 40.44 euro per share. That works out to 26.9 billion euro or $33.6 billion, reports CNBC-
TV18.
Lakshmi Mittal [ Images ], however, will have to give up his claim on the chairmanship of the combined
entity. He will be the board president while Joseph Kinsch will be the chairman of the combined steel giant.

Arcelor chairman Joseph Kinsch however added that the company's administrative council has decided to
continue its privileged relations with Severstal.

"The administrative council came to the decision that the Mittal Steel offer, which is at 100 per cent of
Arcelor's shares is better than Severstal. Nevertheless, the council has decided to continue its privileged
relations at an industrial level with Severstal," said Joseph Kinsh, chairman, Arcelor Board.

Jeanneau Krecke, Luxembourg's Minister for Economy said clinching the deal is a matter of pride for the
country as well.

"If shareholders and regulators accept it, it will be an extraordinary deal for Luxembourg. The biggest steel
manufacturing firm in the world will have its headquarters here, I think it's a good victory for us," Jeanneau
Krecke, Minister For Economy, Luxembourg said.

Reacting to the Mittal-Arcelor deal, Russian steel maker Severstal said in a statement that its agreement
with Arcelor is legal and binding.

The company also added that Arcelor's decision may be breach of contract with SeverStal and that it is
reviewing all its options. Jason Hunter of Steel Business Briefing said the deals will give Mittal a presence in
South America. He however added that from the investor perspective, it may be attractive for financial
investors but not for individuals looking to gain long-term value.

"From Mittal Steel's point of view, it is a terrific acquisition for them. It gives them a very big presence in
South America, which they've been looking for a long time, it's a very low cost region to produce in. For
Arcelor shareholders, there are two very distinct camps. There are the financial investors that are out to
make a very quick buck, they will be very pleased with the deal, I am sure. The longer term investor who is
looking to add value to his money and to his investment in the company, I suspect, will lose out in the short-
term," said Jason Hunter, Steel Business Briefing.

Jason also said that the biggest barriers for Arcelor-Mittal will be the North American markets.
"Certainly the biggest barrier to Arcelor-Mittal will be the North American markets. Arcelor acquired a
company in Canada [Images ], which is very big in North American automative industry. We understand that
will be retained in the new format of the company and his other North American facilities in order to comply
with regulations in there," Hunter added.

Indian Commerce Minister Kamal Nath [ Images ] lauded the deal and said it was a demonstration of the
intellectual and entrepreneurial abilities of Indians. "It's a demonstration of India's and people of Indian
origin's intellectual and entrepreneurial abilities. I had raised this issue when countries had tried to block it
and said that globalisation is not a one-way street. We are going to have in this new economic order, Indian
corporates, people of Indian origin investing and creating employment and creating economic activities in
other countries. So this is happening and I really think that countries need to realise this that there's a new
economic architecture," said Kamal Nath, Commerce Minister.

Finance Minister P Chidambaram [ Images ] has also issued a comment on the deal. "We are very happy
and proud that a company with Indian links is the world's largest steel maker in the world," said P
Chidambaram, Finance Minister.

"For more on markets & business, log on to www.moneycontrol.com"

June 29, 2006

Is India's pride in Mittal misplaced?

Lakshmi Niwas Mittal made his fortune outside of his native India, but that hasn't stopped his compatriots
from hailing the chairman and chief executive of Rotterdam-based Mittal Steel as something of a national
hero. After winning a five-month battle for control of Luxembourg-based steelmaker Arcelor to create the
world's largest steel conglomerate, Mittal has become the talk of India.

"Our man Mittal has become the global steel king," says Bombay taxi driver Krishnadas Tiwari. He heard the
news on his pocket radio as he was checking out World Cup soccer scores from Germany [ Images ].
Mittal's triumph in the $33.6 billion takeover has stoked Indian national pride in a big way, even though he
paid a steep price -- in terms of both money and managerial control -- to close the deal. It scarcely seems to
matter that Mittal hasn't lived in India for decades and resides in one of the most valuable private homes in
Britain, a sprawling mansion in London's [ Images ] Kensington Palace Gardens.

Pride And Power

From India's perspective, the takeover struggle was basically about one of its own taking on the European
business establishment and winning big. Indian sensibilities were rubbed raw early on in the takeover battle
when Arcelor CEO Guy Dolle dismissed Mittal Steel as a "group of less than average businesses" and
proclaimed in a rejection of the unsolicited bid by the Indian steel dealmaker that his own company
embodied "European cultural values."

Now that Mittal has prevailed, India's political establishment has been quick to cast the takeover as an
affirmation of their country's economic ascendancy. Indian Finance Minister Palaniappan Chidambaram
gushed, "A person of Indian origin has achieved so much." And even the president of India's powerful
Confederation of Indian Industry, R Seshasayee, issued a press release declaring, "Mittal has set a new
benchmark in a globalizing world and in raising the banner of the power of Indian enterprise."

Mittal Steel, which post-merger will be known as Arcelor-Mittal, is starting to take notice of India's growth
potential as well. Though the tycoon never before invested a single rupee in India, last October Mittal
announced a $9 billion investment to build mining and steel making operations with a total capacity of 12
million metric tons in the poor but resource-rich tribal state of Jharkhand.

Hero to many

Mittal, of course, is hardly alone. South Korean steel giant Pohang Steel Company, better known as Posco,
has already signed a memorandum of understanding with the Orissa state government in east India to build
a $12 billion integrated steel making complex.

Great Britian's Corus Group and even Arcelor were also fine-tuning their India strategies. But Indians are
especially glad to have one of their own investing so heavily. That's one big reason New Delhi [ Images ] has
been rooting for Mittal to prevail over Arcelor.

Mittal's ambitious plans for India will be a boost for this emerging economy. For years, India's aging steel
plants have been in need of investment. Today, India produces 40 million tons of steel a year. By 2010
demand will hit 65 million tons. Little wonder outside investors have their eye on Indian steel. "Most of the
global players are looking for iron ore in India and coal in China," says one Bombay steel analyst.

Taking credit

To date, though, India 's raw materials have been poorly exploited. The country has total iron ore reserves
of 24 billion tons, but just 150 million tons are mined in any given year. And just 60 million are used for
domestic consumption, while the rest is exported. That's why many are banking on the combination of
Mittal's industry experience and deep pockets to help transform India into a steel industry player.

Still, some Indian executives view all the hoopla over the Mittal-Acelor deal as excessive. "The Arcelor deal
is the triumph of Indians and not India," says Harsh Goenka, chairman of retailing and tire-making
conglomerate RPG Enterprises. "We are proud of Mittal, but India can't take credit for what he was able to
do."

Goenka recalls Mittal's lack of enthusiasm about the country of his birth. Last November, Goenka asked
Mittal why he was a latecomer to investing in India. "I didn't think the Indian market would grow so fast,"
Goenka recalls Mittal saying. But it is, and Mittal, the not-so hometown hero, now wants a piece of the
action.

Mittal's Jharkhand plan in limbo

Mittal Steel's proposed steel plant at Jharkhand is running the risk of being delayed, which could lead to cost
escalation.

The main bottleneck appears to be mine allocation. According to the plan chalked out by Mittal Steel
Jharkhand, the company is now at the point of making investments in machine and equipment.

Sanak Misra, chief executive officer, said the company was in talks with 12 companies for technology and
equipment but could not place orders, since there was no clarity on the mines issue.

The implementation programme of the project was scheduled for October 2007, as per the roadmap drafted
by Canadian company, Hatch.

The draft report was submitted this month. "Up to June, Mittal Steel is on schedule but by August we need a
definitive picture on mines," he said.

The main contention boils down to Iisco-owned Chiria mines, the largest iron ore belt in Asia, currently
under litigation. The Jharkhand government had filed an appeal, in the High Court, earlier in the year,
against the mining tribunal ruling, which went in favour of SAIL [ Get Quote ]. Misra said Chiria was an
important angle in the Mittal Steel project.

Chiria was the only known deposit in Jharkhand, he added. The other mines had not been explored and
neither the volume nor quality was known.

The Jharkhand government has appointed Geological Survey of India and Mineral Exploration Corporation
for prospecting of mines.

S Satapathy, mining secretary Jharkhand government, said Mittal Steel had sought a letter of comfort and
the government was working on alternatives to Chiria mines.

The government was hopeful of finalising the letter of comfort within the next fortnight. Misra said the move
to start exploring other mines was a step in the right direction.

The prospecting entailed assessing the quality of iron ore and volume of iron ore, which takes much longer.

Misra said if there was advance knowledge of the mines, then assessing the volume of ore would take at
least a year.

He however clarified that it would also depend on the ability to conduct the assessment. Mittal Steel would
like the Jharkhand government to proceed expeditiously with legal issues and mobilise resources faster,
Misra said.

Mittal Steel's requirement of iron ore was around 600 million tonne over a 30-year period for producing 12
million tonne. The project would be in two phases of six million tonne each. The memorandum of
understanding with the Jharkhand government for the steel plant was signed last October.

June 30, 2006

Shareholders nod Arcelor-Mittal merger

Paving the way for a merger between Arcelor and Mittal Steel, an overwhelming majority of shareholders of
the Luxembourg-based firm on Friday voted down a merger proposal from Russia's [ Images ] Severstal.

About 58 per cent of Arcelor shareholders voted against the Severstal offer.

In the process, they accepted Mittal Steel's $32.3 billion offer, which was approved by the Board of Arcelor
on June 25 after a five-month long battle.

Arcelor had recommended acceptance of share and cash from Mittal Steel valuing at about $32.3 billion,
which would create a group with 3,20,000 employees producing about 116.0 million tonnes of steel
annually, accounting for about ten per cent of the world market.

Arcelor chairman Joseph Kinsch told shareholders that the long fight with Mittal was worth it, saying the
India-born steel tycoon L N Mittal [ Images ] and the markets had finally recognised Arcelor's "true value."

The Board of Arcelor had called on shareholders to vote against Severstal, saying it believed the Mittal deal,
which it had originally described as unfriendly and hostile, was better and set a benchmark for the steel
industry.

"We have created in five months more than euro12 billion in value," Kinsch said.

"The battle was long and hard," he said. "This defense allowed us to come out with the best solution for the
group and the most value for shareholders."

Meanwhile, Severstal chairman Alexei Mordashov has said his company was examining all its options in
relation to Arcelor, which had announced a merger with the Russian company on May 26 to ward off the bid
from Mittal.

Kinsch, however, rejected suggestions that the Severstal deal was a tactic to block Mittal's offer and force
the stakes higher, claiming the board had only been able to change its mind about Mittal after it discussed
the detailed business plan early this month.

July 06, 2006

L N Mittal to meet PM on Friday

Steel baron Lakshmi Mittal [ Images ], on his first visit to India after acquiring world No.2 steel firm Arcelor,
will meet Prime Minister Manmohan Singh [ Images ] on Friday and share a platform with state-owned
ONGC [ Get Quote ], with whom he is stitching a partnership for overseas oilfield acquisition.
L N Mittal [ Images ], chairman and CEO of Mittal Steel and director on the board of ONGC Mittal Energy Ltd
- the joint venture company of Mittal Steel and ONGC, which recently won two lucrative oil fields in Nigeria -
will address a joint press conference with ONGC chairman and managing director R S Sharma on Friday
afternoon, industry sources said.

While the press conference has been officially called to "share developments related to OMEL", Mittal's
other meetings would be to further investment in steel sector in India, one of the two countries the merged
Mittal-Arcelor has identified for expansion.

Besides meeting Navin Patnaik, Chief Minister of Orissa, where Mittal Steel is looking at investment
opportunities, he would meet Union Petroleum Minister Murli Deora.

The steel baron would also review the progress made in the 12 million tonne steel plant project at an
estimated investment of Rs 40,000 crore (Rs 400 billion) in Jharkhand, for which he had signed an MoU with
the state government last year.

In Jharkhand, Mittal's India operation has sought a Letter of Comfort seeking iron from Chiria mines but the
state government in turn wanted Mittals to make at least 25 per cent of the investment committed by it.

In its maiden venture in an international bidding round, OMEL had won Blocks OPL 209 and OPL 212 in the
Nigeria 2006 Mini Bid Round. The recoverable reserves potential estimated from a few clearly delineated
prospects in the blocks are expected to be over one billion barrels of oil and oil equivalent gas.

OMEL is registered in Cyprus. ONGC Videsh [ Images ] Ltd, the overseas arm of Oil and Natural Gas Corp,
holds 49.98 per cent equity and Mittal Investment Sarl holds 48.02 per cent. The balance 2 per cent is with
SBI [ Get Quote ] Caps.

Last year, OVL had signed an MoU with Mittal Investment Sarl, the investment holding arm of Mittal Steel,
the world's largest steel company, to form ONGC Mittal Energy Ltd.

The brain behind this partnership of Indian goliaths was to leverage the mutual strengths and effectively
supplement the efforts of the ONGC Group of companies in securing global footprint in the grand race for
acquiring oil and gas assets, sources said.

OMEL would be pumping in almost $6-bn back-to-back infrastructure support to Nigeria in return for the
blocks.

The process of getting a toe-hold in Nigeria was initiated in November last when the LN Mittal group used its
proximity to the Nigerian government to initiate talks on the oil business.
Mittal, Arcelor spent Rs 3,000 cr over deal

Besides being a battle of nerves, Mittal-Arcelor saga also witnessed over Rs 3,000 crore (Rs 30 billion)
being spent by both the companies - an amount which is larger than market capitalisation of most of the
Indian steelmakers.
While Arcelor spent huge money for making all out efforts to dissuade the Netherlands-based world's largest
steelmaker from the takeover bid, Mittal went full-throttle to clinch the deal.

The two companies spent more than $650 million in form of legal, publicity and banking fees, while there
might have been ever more unquoted expenses involved in the six-month battle.

Arcelor spent nearly Rs 1,300 crore (Rs 13 billion) to defend itself against the unsolicited bid besides paying
Rs 822 crore (Rs 8.22 billion) to Russian steel giant Severstal as a break-up fee.

Tata Steel [ Get Quote ], SAIL [ Get Quote ] and JSW Steel [ Get Quote ] are the only three exceptions whose
market caps are higher than Rs 3,000 crore, sources said.

The market caps of companies like Essar Steel [ Get Quote ], Ispat Industries [ Get Quote ], Jindal Stainless
[ Get Quote ], Bhushan Steel [ Get Quote ] and Usha Martin [ Get Quote ] are between Rs 600-2,400 crore
(Rs 6 to 24 billion), while JSW Steel's market value stood at nearly Rs 4,450 crore (Rs 44.50 billion) at the
end of today's trading session.

July 07, 2006

Mittal open to acquisitions in India

Steel tycoon L N Mittal [ Images ] on Friday said he was open to acquiring Indian steel companies.

"Who said that I am not interested," he told reporters at a press conference here when asked whether he
was interested in Indian companies.

On Tata Steel [ Get Quote ] deciding to increase promoters stake to ward off hostile takeovers, Mittal said:
"Why Tisco should be vulnerable? It is news to me."

On his proposed investment plans in Jharkhand and Orissa, he said: "We are evaluating our position. The
progress (in Jharkhand) is not as satisfactory as we would like it to be. It may not be both. If the progress is
not satisfactory, we will have to take a decision."

Mittal dumps Jharkhand, eyes Orissa

Mittal Steel chief L N Mittal [ Images ] on Friday announced his intention to set up a 12 million tonne steel
plant in two phases in Orissa and hoped to sign an agreement to this effect soon.

He made the announcement shortly after arriving in India to firm up his plans for investment in the country of
his birth.

Mittal said that the total investment in the plant could be of the order of Rs 30,000 to Rs 40,000 crore (Rs
300-400 billion).

He indicated that the company has dropped a proposal to set up a plant in Jharkhand of equal capacity
because of the delays in Ranchi and instead concentrate on Orissa.

"Though the Jharkhand government is cooperating, we are not happy with the progress there. We are
weighing our options in Orissa. We want to move fast," the world's biggest steelmaker told reporters after
meeting the Orissa chief minister.

The biggest steel tycoon in the world Lakshmi Niwas Mittal and his son Aditya landed at Bhubaneswar
airport around 0930 hours in a chartered aircraft and headed for the state secretariat to meet Orissa Chief
Minister Naveen Patnaik and his cabinet colleagues.

He was accompanied by his chief India representative and Mittal Steel Jharkhand CEO Sanak Mishra.

Mittal is slated to depart for New Delhi [ Images ] in the afternoon where he would meet Prime Minister
Manmohan Singh [Images ], Finance Minister P Chidambaram [ Images ] and other ministers of the United
Progressive Alliance [ Images ] government.

The Netherlands-based steelmaker's arrival has generated considerable interest in the domestic market.
Rumours were doing rounds that he could reconsider relocating his 12 MT steel plant from Jharkhand to
Orissa.

Jharkhand unruffled

Jharkhand Chief Minister Arjun Munda on Friday said he had no problem with Mittal Steel's decision to set
up a steel plant in neighbouring Orissa, even as he defended the tardy pace of work on the company's
greenfield project in his state.

"He is a global steelmaker and is free to go anywhere. Sso why should we have a problem," the chief
minister told reporters in New Delhi.

Asked to comment on Mittal's assertion that work on the 12 million tonne greenfield plant in Jharkhand was
progressing very slow, Munda said the state was finalising a rehabilitation policy.

"When it is finalised, the process would gather momentum," he said.

July 18, 2006

Mittal Steel acquires 50% Arcelor shares

Netherlands-based Mittal Steel on Tuesday claimed it has met the minimum conditions for takeover of
Arcelor by acquiring 50 per cent of the Luxembourg-based company's outstanding shares.
"Mittal Steel announces that on a preliminary basis and based on statements made by financial
intermediaries, the minimum tender condition of the offer (i.e acquisition of 50 per cent of Arcelor's
outstanding shares on a fully diluted basis) has been met," the company said in a statement.

After an intense battle of nerves that lasted five months since January, the Arcelor Board last month
accepted Mittal's improved takeover bid worth $34 billion.

A merger of the two would create the world's largest steel entity Arcelor-Mittal, which would be three times
bigger than its nearest rival.

The final results of the offer would be published on July 26, Mittal Steel said. Under the revised offer, Arcelor
shareholders would get 13 Mittal Steel shares and 150.60 euros for every 12 Arcelor shares.

If the takeover was accepted by 100 per cent of current Arcelor shareholders, they will end up owning 50.5
per cent of the combined group, with the Mittal family owning 43.6 per cent of the capital and voting rights.

July 26, 2006

Mittal Steel gains 92% of Arcelor shares

Mittal Steel owned by NRI steel tycoon L N Mittal [ Images ], on Wednesday announced it has gained 92 per
cent control of Arcelor as it moves closer to completing its 25 billion euro (Rs 145,000 crore) takeover of the
European rival.
Mittal, which on July 18 announced acquiring 50 per cent share in Arcelor fulfilling the minimum requirement
for takeover of the rival, today said 594.5 million shares and 19.9 million Arcelor convertible bonds had so
far been tendered, representing 91.88 per cent of the group's fully - diluted share capital.

The company announced that it would reopen its offer for Arcelor on Thursday that would give shareholders
of the Luxembourg-based firm time until August 17 to tender their shares into Mittal's offer.

"I am delighted at this result which is a resounding endorsement of the strategic logic and value of the
merger of Mittal Steel and Arcelor, a truly industry transforming deal," L N Mittal said in a statement.

"We are very excited about our future as one company and believe this strong vote of confidence from
shareholders paves the way for a speedy integration process allowing us to realise the full benefits of
working together as the undisputed world steel leader," he said.
According to experts, ever since Mittal made the offer to Arcelor, the combined market capitalisation of the
two companies has gone up by $8 billion.

The merged entity, to be christened Arcelor-Mittal, would control 10 per cent of the world's steel making
capacity that is currently estimated at 1,000 million tonnes a year

August 02, 2006

Mittal-Arcelor merger worries China

Chinese steel industry has for the first time openly expressed concern over the merger of global steel giants,
Mittal with Arcelor saying it posed "great challenge" for the domestic industry.
It also urged the government to raise the threshold to ward off foreign acquisitions in the world's largest
market.

China should place tighter controls on foreign investment in its massive but fragmented steel sector, and
make bolder moves to consolidate its steel makers into large groups, the China Iron and Steel Association
said.

"The sector should be controlled by (Chinese) state-owned and privately owned steel makers, instead of
foreigners, as it is one of the country's most important basic industries," vice-chairman of the association,
Luo Bingsheng was quoted as saying by the China Daily.

Luo said the expected Mittal-Arcelor merger forced China's steel sector to speed up "trans-regional and
trans-ownership" consolidations to form internationally competitive groups.

Mittal after the takeover has already expressed keen interest in China. He spent $338 million last October
buying a 36.7 per cent stake in Valin Steel Tube & Wire Co Ltd, a Shenzhen-listed steelmaker in Hunan
Province.

Earlier this year, Arcelor also clinched a deal to acquire a 38.4 per cent stake in Laiwu Steel Corp, a
Shanghai-listed Chinese steel mill for $260 million. According to a national steel industry policy launched
last year, foreign investors are banned from having a controlling stake in Chinese steelmakers.

Currently there are around 800 steel makers in China, but most of them are small.
August 16, 2006

Arcelor Mittal announces shake-up in US arm

Arcelor Mittal has announced key changes in senior positions within Mittal Steel USA in an effort to improve
operational performance and align the company's flat products division in America with long-term goals for
the combined company.

Lou Schorsch, outgoing president and CEO of Mittal Steel USA, has been appointed to the position of CEO
Flat Products, Americas and will report to Arcelor Mittal CFO Aditya Mittal.

"The appointment of Lou and the management changes at the US operations will be key to achieving a
higher level of benefits, as well as performance. Lou has distinguished himself as a proven leader within
Mittal Steel and has played a critical role in successful integration of ISG acquisition in the US," said Mittal,
son of NRI steel tycoon L N Mittal [ Images ].

"We will look for him to play a pivotal role in the integration of Arcelor Mittal in the America's and capturing
the available synergies of the new, enlarged American flat products division," he added.

In his new role, Schorsch will lead the integration and executive management of flat-rolled operations in the
US.

Meanwhile, Mike Rippey has been selected to succeed Schorsch in the role of President and CEO of Mittal
Steel USA.

Rippey previously served as Executive Vice-President, Sales and Marketing in the same company.

Executive Vice-President of Operations, Bill Brake, who is leaving the company, will be succeeded by Len
Chuderewicz, who currently heads operations at Mittal Steel - Indiana Harbour.

September 11, 2006

Centre, states need to do more: Mittal Steel

As Orissa exuded confidence that an agreement with Mittal Steel on a $7-billion steel plant could be
reached by November, the world's largest steel maker said it needed to see more commitment from the
central and state governments toward its project.

Mittal Steel, which has announced two identical 12 million tonne projects in Orissa as well as Jharkhand,
said India should make it easier for investors to invest here.

"Our desire to be here (in India) is considerable. It will take a lot of hard work from both the government in
New Delhi and the states on our project," Mittal Steel (India) CEO Sanak Mishra said, delivering a lecture at
the Diamond Jubilee function of the Indian Institute of Metals in New Delhi.

Earlier in the day, Orissa Minister for Steel and Mines Padmanabha Behara said: "The MoU would be
through once Mittal Steel acquires 3,000 acres of land it has sought from the state government".

The global memorandum of understanding with Mittal Steel was likely to be signed within the next two
months, he said.

Mishra, however, said the state governments should be firm on their commitment to enable the company
fructify its investment in the country.

Complete coverage: The Mittal Steel-Arcelor saga

He also noted the Centre understood the company's priorities -- evident from the fact that Prime Minister
Manmohan Singh was heading the Infrastructure Committee.

Behara said Mittal was likely to use either the Paradip Port or the upcoming port in Gopalpur being built by
the Orissa government for its steel project.

The possible sites for Mittal's Steel plant are Khallikot in Ganjam, Basudevpur in Bhadrak, Balgopalpur

September 26, 2006

Mittal happy with Arcelor deal

L N Mittal [ Images ] has said he is 'pleasantly surprised' at how complementary the $34.3 billion merger of
his company Mittal Steel with its nearest rival Arcelor has proved to be.

In an interview to Financial Times, the world's fifth richest man says although he is not the CEO of the
merged entity Arcelor-Mittal, he would play a role in setting future strategy and looking at growth
opportunities.

"I have been pleasantly surprised at how complementary Mittal Steel and Arcelor have turned out to be. I
have now met a lot of top Arcelor managers -- about 35 in total -- and I have been very impressed with
nearly all of them," he said.

The NRI entrepreneur had earlier this year succeeded in merging Luxembourg-based Arcelor with his
company after a five-month battle to create an empire that employs 3,20,000 people and produces more
than 110 million tonnes of steel, nearly 10 per cent of global steel output.

• Complete coverage: The Mittal Steel-Arcelor saga

Mittal, who is president of Arcelor-Mittal, said the takeover puts the world's largest steel company ahead of
the competition by many years.
"We are a new benchmark for the industry and I'd like to see other players move forward as well through
their own consolidation efforts," he said.

As part of the merger, about 35 teams of managers from the two companies have started working together,
he said, adding the teams are under pressure to deliver results.

Asked about his role in the new entity, Mittal said as non-executive chairman he will play a part in setting
strategy, giving a vision for the company, looking at growth opportunities, talking to employees, strategic
investors and overseeing and helping the integration.

October 16, 2006

Arcelor-Mittal in tie-up with Neel Products

Arcelor Tailored Blank, France [ Images ], an Arcelor-Mittal group company, has signed a joint venture with
Neel Metal Products for manufacturing tailor welded blanks for the automotive industry.

The 50:50 joint venture will see the setting up of laser welded facilities in India. A total investment of Rs 60
crore (Rs 600 million) will be pumped into the venture in a phased manner.

Haryana chief minister Bhupinder Singh Hooda, along with a Confederation of India Industry delegation, has
been touring Europe for forging deals.

Tailor welded blanks are used in critical sheet-metal components of automobiles for safety improvement and
weight reduction. Arcelor Tailored Blank is a leader in manufacturing of tailored blanks. It has facilities in the
US, Europe and China.

The firm delivers products to leading automobile companies such as Ford [ Images ], General Motors
[ Images ], Honda, Renault [ Images ], Nissan and Volkswagen.

November 03, 2006

Chinese co may sell 49% to Arcelor Mittal

One of China's largest steel companies, Baotou Iron & Steel is in talks with the world's top steel maker,
Arcelor Mittal over the possible sale of 49 per cent stake, the official media reported on Friday.
No other details were provided by the China Daily report. In December last year, Mittal Steel had confirmed
that it was involved in talks with Baotou Iron & Steel Group Co Ltd.
Prior to Mittal Steel's acquisition of Arcelor, the latter had signed an agreement with Chinese producer Laiwu
Steel Group that will allow the European company to hold a 38.41 per cent stake in Laiwu Steel Corporation.

Mittal last year acquired a 36.67 per cent share in Valin Steel Tube & Wire Co Ltd in central China's Hunan
Province.

Meanwhile, Baotou Steel Union Co in North China's Inner Mongolia Autonomous region, a subsidiary of
Baotou Iron & Steel Group, plans to pay about 6.97 billion yuan ($882 million) to buy assets from its
controlling shareholder to expand, the report said.

The listed steel maker will offer 3.03 billion new yuan-denominated shares to Baotou Iron & Steel Group at
2.3 yuan (29 US cents) each, the company said on Thursday in a statement.

The acquisition will mean that almost the entire group is publicly traded, making it easier for Baotou Steel
Union to take over or merge with rivals. China, the world's biggest Steel maker, is encouraging consolidation
in the industry to curb overcapacity and boost competitiveness as its economy expands.

November 06, 2006

Lakshmi Mittal named CEO of Arcelor Mittal

The board of directors of Arcelor Mittal on Monday unanimously appointed Lakshmi N Mittal as the new
chief executive officer with immediate effect. Mittal will continue in his role as president of the board of
directors.

According to a release on the company website, Roland Junck has stepped down as chief executive, but will
remain a member of the Group Management Board (GMB) with his existing portfolio and additional
responsibility as advisor to the chief executive.

"The GMB will now comprise Lakshmi N Mittal, Aditya Mittal, Roland Junck, Michel Wurth, Gonzalo Urquijo
and Malay Mukherjee. Davinder Chugh will retain his operational functions reporting directly to the CEO,"
the release added.

Joseph Kinsch, chairman of the board, said: "We are making these changes to clarify the leadership of the
company. It had become clear over the past months that the interests of the company were not best served
by the previous structure.

"I believe these revised arrangements are in the best interest of all stakeholders. Mittal is one of the most
experienced and successful executives in the steel industry, and the board is confident his leadership will
deliver the considerable potential of Arcelor Mittal."
Arcelor Mittal on Monday reported EBITDA (earnings before interest, tax, depreciation and amortisation) of
$4.35 billion and sales of $22.1 billion for the third quarter ended September 30, 2006.

"The anticipated low seasonal volume was offset by a strong rise in steel prices. Looking ahead, we are on
track to deliver guidance for the full year," chief financial officer Aditya Mittal said in a statement.

November 13, 2006

Arcelor-Mittal plans to sell Dofasco

World's biggest steel maker Arcelor-Mittal's plans to sell Dofasco to German steel giant ThyssenKrupp has
hit a roadblock, with the Dutch foundation that controls the its Canadian unit deciding against its dissolution.

"Arcelor-Mittal has been informed that the directors of the Strategic Steel Stichting, the Dutch foundation
that holds the shares of Dofasco Inc, decided on November 10 not to dissolve the foundation, which would
have permitted the sale of Dofasco," Arcelor-Mittal said in a statement.

Arcelor had acquired Dofasco in January this year from ThyssenKrupp, but Mittal then struck a deal under
which the German steel giant would have obtained Dofasco once Mittal had taken over Arcelor.

"The boards of both Mittal Steel Company NV and Arcelor SA had previously requested the directors of the
foundation to dissolve the foundation in order to allow the sale of Dofasco," it said.

"Arcelor-Mittal is reviewing the situation and will be in contact with the US Department of Justice," the
statement added.

November 14, 2006

Arcelor-Mittal chokes on its own 'poison pill'

A Dutch foundation, set up as a 'poison pill' by Luxembourg-based steel group Arcelor to deter Mittal Steel,
is refusing to allow the merged Arcelor-Mittal to sell Dofasco, the Canadian steel company, to Germany's
[ Images ] ThyssenKrupp.
The sale of Dofasco was a precondition for the approval of the Arcelor-Mittal merger by the department of
justice in the United States.

Arcelor-Mittal in a release on Tuesday said, "Arcelor-Mittal has been informed that the directors of the
Strategic Steel Stichting, the Dutch foundation that holds the shares of Dofasco Inc., decided on November
10 not to dissolve the foundation, which would have permitted the sale of Dofasco.

"The boards of both Mittal Steel Company NV and Arcelor SA had previously requested the directors of the
foundation to dissolve the foundation in order to allow the sale of Dofasco. Arcelor-Mittal is reviewing the
situation and will be in contact with the US Department of Justice."
ThyssenKrupp, Germany's biggest steel maker is offering to pay 68 Canadian dollars per Dofasco share,
the final price that it offered for Dofasco in a bidding war for the Canadian company this year but $3 less
than Arcelor's winning bid of 71 Canadian dollars per share.

The creation of Stichting in April by Arcelor provoked an outcry from Mittal during the politically charged
takeover battle between the companies.

Talks are under way between Arcelor-Mittal and the department to establish what alternative asset sale
would satisfy American competition authorities, The Times reported.

The directors of Strategic Steel Stichting are refusing to dissolve the foundation created to hold shares in
Dofasco. Without the unanimous approval of Stichting's three directors, Dofasco cannot be sold.

The foundation is refusing to wind itself up, despite requests for it to do so from the boards of both Arcelor
and Mittal. According to the report, the Stichting directors have objected to the sale on the grounds that
Dofasco owns technology important to Arcelor and the price offered by ThyssenKrupp is too low.

The directors are also insisting on carrying out their original responsibility of taking an independent view of
any sale of Dofasco.

November 16, 2006

Mittal Steel declares interim dividend of $0.125 per share
Mittal Steel Company NV announced on Thursday an interim dividend of $0.125 per share for its European
and New York Stock Exchange shareholders.

The cash dividend would be payable from December 15, 2006 to the Euronext Amsterdam, Euronext
Brussels, Euronext Paris, Luxembourg Stock Exchange and Spanish Exchanges shareholders, who would
hold shares in the company as of November 28, Mittal Steel said in a release.

A similar dividend would be payable to NYSE shareholders, who would hold the requisite shares as of
December 1, 2006, the company release said.

The shares would be traded ex-dividend starting November 29.

European shareholders would receive $0.125 per share in Euros, based on the ECB exchange rate on Nov
29, 2006, NYSEX shareholders would receive $0.125 per share, both payable from December 15, 2006
onwards.
On payment of the cash, dividend 25 per cent dividend tax would be withheld, it added.

November 30, 2006

L N Mittal buys 13.33% in Indiabulls Infrastructure

L N Mittal [ Images ], CEO of the world's largest steel company Arcelor-Mittal, and a wholly owned unit of
San Francisco-based Farallon Capital, the world's largest investment fund, have together acquired a 13.33
per cent stake in Indiabulls [Get Quote ] Infrastructure Development Limited, the majority owned subsidiary
of Indiabulls Financial Services Limited, for Rs 447 crore (Rs 4.47 billion).

The deal values Indiabulls Infrastructure Development Limited at Rs 3,350 crore (Rs 33.50 billion). Post the
new investments, the shareholding of Indiabulls Financial Services in Indiabulls Infrastructure Development
Limited will go to 86.7 per cent.

This investment marks the next step in undertakings by Indiabulls Financial Services in the construction-
development and real estate related segments, and marks the company's first major investment in the
infrastructure area. Indiabulls Infrastructure Development Limited would be undertaking large-scale
infrastructure projects and development of Special Economic Zones to cater to Fortune 500 companies that
are interested in setting up manufacturing units in India to leverage advantages of vast skilled workforce of
India.

L N Mittal has been an investor in Indiabulls Financial Services, the listed company since the year 2000
when he had originally bought 6.13 million shares representing about 7.52 per cent stake in the company at
an average price of Rs 6 per share. Mittal's original investment in Indiabulls Financial Services has
appreciated by more than 90 times in 6 years, and he continues to be a large shareholder in the company.

About six months ago, Mittal invested about Rs 90 crore (Rs 900 million) to buy 8.4 per cent stake in
Indiabulls Credit Services Ltd, a unlisted subsidiary of Indiabulls Financial Services that focuses on
consumer loans.

Farallon Capital has been an investor in Indiabulls Financial Services since the IPO of the company in year
2004, when it invested at Rs 19 per share and has seen its initial investment multiply over 25 times. The firm
continues to be one of the largest shareholders of the company.
Indiabulls Infrastructure Development Limited is focused on infrastructure development in India and plans to
build world class facilities and infrastructure to promote the business activities for SEZs.

IIDL will be part of the group of real estate subsidiaries and associates that will form Indiabulls Real Estate
[ Get Quote ] Limited subsequent to the implementation of the scheme of demerger.

The demerger is expected to be completed during the current fiscal quarter, and will result in the company's
equity shareholders owning one equity share of Indiabulls Financial Services Limited, comprising the
financial services business, and one equity share of Indiabulls Real Estate Limited, comprising of the real
estate and construction-development related business, for each share of the Company they currently own.

"India is a rapidly growing economy and provides a unique opportunity to create world-class infrastructure
and development. Indiabulls group is well positioned in construction-development and infrastructure market
to leverage Indiabulls strong pan-India presence, strong execution skills, proprietary deal pipeline, and
strong track record. The confidence of L N Mittal and Farallon Capital in Indiabulls Infrastructure
Development Limited is a testament to the huge opportunity in front of the company," said Sameer Gehlaut,
chairman & CEO of Indiabulls Group, in a media release.

December 12, 2006 17:38 IST

Oilfield: Mittal signs deals with Total, Lukoil

In the first signs of falling apart of the pact it had with ONGC [Get Quote], the world's largest steel producer
Mittal Steel is believed to have entered into separate deals with Total of France and Lukoil of Russia for
acquisition of oilfields in Africa and Central Asia.

Mittal Steel, which had last year announced its entry into oil and gas business through two joint ventures
with Oil and Natural Gas Corp, has already on its own picked 3 per cent stake in Chevron's under-
construction $6 billion Olokola liquefied natural gas (OK-LNG) project in Nigeria.

Industry sources said Lakshmi N Mittal is not happy with the progress of ONGC-Mittal Energy Services Ltd
(OMESL), a JV company that was to trade and ship oil and gas including LNG.

Mittal Steel, in June, had signed a pact with Total to jointly acquire oil and gas properties particulary in Africa
and trade oil and gas produced from such fields. Last month, it signed with Lukoil for specific acquisitions in
Central Asia, particularly Kazakhstan.

The officials of neither Mittal Steel nor Total could be immediately reached for comments.

While the ONGC-Mittal Energy Ltd has landed itself three oil blocks in Nigeria, progress on OMESL had
been slow due to ONGC's new management losing interest in the venture.

While ONGC has not hidden its reservations on trading in oil and gas with Mittal, it has gone ahead and
signed a deal with Hinduja Group for sourcing of LNG and is negotiating an OMEL type of agreement with
the multi-billion dollar group.

Sources said Mittal will get 4.5 million tons per annum of LNG from the OK-LNG venture and is looking at
taking stake in big oil and gas projects in Africa and Central Asia.
Industry pundits predicted that while OMEL may continue operations with its current portfolio of three blocks
in Nigeria, OMESL may be wound up soon. Mittal wants to use his influence in oil-rich Central Asian and
African countries, where he has operations, to get lucrative oil contracts.

OMEL had identified Kazakhstan, Turkmenistan, Azerbaijan, Uzbekistan, Congo, Angola, Trinidad and
Tobago, Romania and Indonesia as priority areas for doing business.

Now, Mittal Steel, which does not have expertise in oil and gas business, will team up with Total to scout for
opportunities in these countries, sources said, adding the two may not float a joint venture company but will
look at participation on case-by-case basis.

ONGC had identified seven countries - Iran, Qatar, UAE, Kuwait, Libya, Oman and Saudi Arabia - for doing
business with Hinduja Group.

Mittal had in August written to the government protesting against reversing of several decision reached with
ONGC last year. ONGC has refused to lend its employees to OMEL or OMESL and turned down a proposal
to open an office in New Delhi.

As a follow-up to the July 23, 2005 MoU, ONGC Videsh Ltd, the overseas arm of ONGC, and Mittal
Investment, the investment holding arm of Mittal Steel, in October 2005 signed definitive agreement to form
OMEL.

ONGC and Mittal Investment joined hands to form OMESL for cooperation in trading and shipping of oil and
gas.

OVL (in place of OMEL) and ONGC (in case of OMESL) were to hold 49.98 per cent equity and Mittal
Investment 48.02 per cent. The balance 2 per cent was to be offered to SBI [Get Quote] Caps.

March 07, 2007

Arcelor Mittal, Chinese co JV plan fails

Steel magnate Lakshmi Mittal's [ Images ] demand for a 50 per cent stake in China's Baotou Iron and Steel
Group has led to collapse of talks for a joint venture as Beijing [ Images ] will not allow foreign steel giants to
take a controlling stake.

Confirming the failure of striking a deal with Arcelor Mittal, the world's largest steel maker, Baotou Iron and
Steel Chairman Lin Donglu said his company had ended talks and is now scouting for local partners.

"We are not talking about any actual cooperation anymore," Lin was quoted as saying by China Daily.
China's steel industry regulations bar overseas steel makers from taking a controlling stake in a joint
venture.

"Because Arcelor Mittal wants to take a stake of 50 per cent or so in the venture, we failed to negotiate a
deal," Lin said, adding the company is now looking at local partners, such as Shanghai-based Baosteel
Group, China's biggest steel maker.

However, Arcelor Mittal plans to raise its stake in Hunan Valin Steel Tube & Wire Co when the Chinese
steelmaker issues new shares.

Arcelor Mittal, which holds a 29.5 per cent stake in Hunan Valin, will take 49.3 per cent of the 520 million
new shares on offer, boosting its holding to 33.3 per cent.

Hunan Valin will use the 2.3 billion yuan raised from the share sale for growth, the company said on
Tuesday.
Sridhar Krishnamoorthy, manager, Arcelor Mittal, said the share placement would raise funds to help Hunan
Valin increase its stake in its subsidiaries.
At the same time, China, the world's largest steel maker as well as consumer, has adopted a cautious
approach to foreign giants like Arcelor Mittal's ambitious plans in the huge market, industry sources said.

For example, senior Chinese lawmakers have urged the government to accelerate its improvement of laws
and regulations on mergers and acquisitions of domestic companies by foreign capitals, which, if not
cautiously handled, might jeopardise the nation's industry security.

China needs improved regulations and laws to guide and manage foreign mergers and acquisitions to ward
off monopoly by overseas companies and ensure national industry's security, said Ma Jinquan, a deputy to
the National People's Congress, China's top legislature.

Ma, a director of the Anshan Iron and Steel Group Corporation in northeast Liaoning Province, suggested
the country to enact such regulations as early as possible to encourage fair competition, standardise
mergers and prevent industry monopoly.

Citing Xugong Group Construction Machinery as an example, NPC deputy Qin Chijiang said it is very
shortsighted for some local companies to sell their brands with a hard-won fame to foreign companies for
capitals.

The country's largest construction machinery manufacturer and distributor agreed last year to sell 85 per
cent of its shares to global private equity firm Carlyle Group. "Xugong made a historical mistake," Qin,
secretary general of the China Society for Finance and Banking, said.

March 09, 2007

Mittal may lose Baotou to Baosteel in China

China's largest steel producer, Shanghai Baosteel, has set its eyes on Baotou Iron & Steel Group after
global steel baron, Lakshmi Mittal's [ Images ] bid for a 50 per cent stake in the Chinese company faltered.

Board Chairman of the Baotou Iron & Steel Group Lin Donglu said Baosteel is in talks with his company for
a merger.

The consolidation of steel businesses in China is key to the profit prospect of steel plants with annual
production capacity of less than ten million tonnes, Lin, also a deputy to the National People's Congress, the
parliament, at the ongoing NPC annual session.

Shanghai-based Baosteel is seeking acquisition targets nationwide. It acquired 69.61 per cent of the stocks
of Xinjiang Bayi Iron & Steel in January, Lin said, taking the acquisition as a wise move.
"The restructuring is in line with the government policy of encouraging consolidation in the steel sector and a
win-win strategy for all since we can share technology, capital and sales network," he was quoted as saying
by Xinhua news agency.

The Mittal Steel-Arcelor saga

Liang Tiecheng, director of the Regional Reform and Development Commission in north China's Inner
Mongolia Autonomous Region where Baotou is located, said Baosteel had proposed to purchase a
controlling stake of Baotou Iron & Steel Group.

But the request has not been decided. Baotou Iron & Steel produced 7.48 million tonnes of crude steel last
year, compared with 22.5 million tonnes from Baosteel.

April 23, 2007

Arcelor Mittal buys Sicartsa for Rs 6,006 cr

The world's largest steel manufacturer, Arcelor Mittal, has received approval from the US and Mexican
competition authorities to acquire Sicartsa from Grupo Villacero for an enterprise value of $1.43 billion
(about Rs 6,006 crore).
"The acquisition of the Mexican integrated steel producer was finalised following all required approvals of
the transaction including sanctions by the US and Mexican Competition Authorities," Arcelor Mittal said in a
release.

Arcelor Mittal had initially announced the transaction on December 20, 2006. Sicartsa is a fully integrated
producer of long steel, with an annual production capacity of about 2.7 million tones and estimated iron ore
reserves of 160 million tonnes.

The acquisition includes Sicartsa's manufacturing facility at Lazaro Cardenas, two mini mills and two rolling
mills, it added.

Arcelor Mittal has also entered into a 50-50 commercial joint venture with Grupo Villacero to utilise the
latter's network for distribution and trading of its own products in Mexico and in the Southwest of United
States.

April 25, 2007

Mittal completes acquisition of Lukoil's assets

Billionaire Lakshmi N Mittal has completed acquisition of Russian oil firm Lukoil's 50 per cent stake in a
Kazakhstan energy firm for $980 million (nearly Rs 4,018 crore).
The stake acquired by Mittal Investments Sarl in Caspian Investments Resources Ltd would allow the India-
born steel tycoon to set up a joint venture company that would control hydrocarbon production in five oil
regions in the Central Asian country.

"Caspian Investment Resources Ltd, which was Lukoil Overseas' 100 per cent subsidiary, has become a
joint venture of Lukoil Overseas and Mittal Investments, where each holds 50 per cent stake," the Russian
firm said in a release.

Under the deal, Mittal Investments, the holding company of Mittal Group, has also taken over 50 per cent of
Caspian's outstanding debt totalling about $175 million, the release added.

May 03, 2007

Mittal Steel set to complete Arcelor takeover

Mittal Steel Company NV, which acquired Luxembourg's Arcelor SA for $38.3 billion last year, said on
Thursday it would complete the transaction in a two-step merger this year.

According to a merger agreement signed on Wednesday, Mittal Steel would merge into an ad hoc
subsidiary -- Arcelor Mittal -- subject to approval of shareholders.

The share swap ratio for the exercise has been fixed at 1:1. The two companies would soon submit
documents relating to the merger to the relevant securities regulatory authorities, Arcelor Mittal said in a
statement.

In the second step, Arcelor Mittal will be merged into Arcelor and the new entity would be known as Arcelor
Mittal.

"The exchange ratio of Arcelor Mittal shares for Arcelor shares has not yet been determined. It will be
announced once approved by the boards of directors of the two companies.

"The companies are actively working to implement the two mergers as promptly as possible in the course of
2007," the statement said.

May 16, 2007

Arcelor Mittal Q1 profit up 44%

Lakshmi Mittal-led Mittal Steel reported on Wednesday a 43.7 per cent increase in its first quarter net profit,
while beating its own forecast due to accelerated synergy generation from its $38 billion takeover of Arcelor
last year.

The world's largest steel maker, to be renamed Arcelor Mittal after completion of merger process later this
year, said its net income rose to $2.3 billion in the quarter ended March 31, from $1.6 billion in the year-ago
period.

Mittal Steel said in a separate statement that the two companies are actively working to complete the
merger process as promptly as possible in the course of 2007.

It said the integration process was going as per the plans and synergies worth $573 million were captured in
the first quarter.

Arcelor Mittal President and CEO Lakshmi Mittal [ Images ] said in a statement: "These results reflect the
strength of Arcelor Mittal's global business model and the continuing strong demand for steel generally.

The Mittal Steel-Arcelor Saga

"The benefits of combining Arcelor and Mittal Steel continue to outperform our expectations and we are on
track to deliver synergies as planned," he added.

The company's sales and operating income rose to $24.5 billion and $3.5 billion, respectively, from $20.9
billion and $2.5 billion in the year-ago period.

The results included the collective quarterly figures for both Mittal Steel and Arcelor.

May 26, 2007

Severstal buys Arcelor Mittal stake in Russian JV

Steel maker Severstal has reached an agreement with Arcelor Mittal to acquire its stake in a joint venture
situated in Russia [ Images ], although NRI steel tycoon L N Mittal-controlled company will remain non-
exclusive agent for some of its products.
"Severstal has reached agreement with Arcelor Mittal to buy the latter's 25 per cent stake in their Severgal
joint venture, located at the Severstal's Cherepovets site, in which Severstal owns 75 percent stake," the
Russian steel major said.

Arcelor Mittal is terminating the Extragal License Agreement with Severgal and will remain a non-exclusive
agent for some Severgal products, it said.

Last year, Severstal and Mittal Steel were locked in a bout to seek control over the European giant Arcelor,
finally won by the London-based NRI steel baron.
According to local experts, the Severgal JV set up by Arcelor before its takeover by Mittal in 2006, was
originally established to serve the former's CIS automotive market.

While the JV has the capacity to produce coated products for both the industry and the automotive markets,
the hot dip galvanising line is currently mostly dedicated to supplying the booming domestic industry market,
the release said.

June 04, 2007

ArcelorMittal unveils global brand

ArcelorMittal, the world's biggest steel maker, on Monday launched its global brand to reflect the identity of
the new company formed after the merger of Arcelor and Mittal Steel. The brand is based on the theme of
'Transforming Tomorrow', with sustainability, quality and leadership as the three main values, a company
statement said.

"We wanted a positioning which not only reflects the strategy of the business but also reflects the
responsibility we have as the leading player in our sector and one of the largest companies," ArcelorMittal
President and CEO Lakshmi Niwas Mittal was quoted as saying in the statement.

Mittal said the launch of the brand was also an important part of the integration process, in that it created a
common bond for employees and a clear set of values. The integration process of the two companies was
progressing well, he added.

Observing that the steel industry was in a stronger position due to consolidation and globalisation, Mittal
said, "as a sector leader, we expect ArcelorMittal to remain at the forefront of this transformation".

NRI tycoon L N Mittal-controlled Mittal Steel had last year acquired its nearest rival Luxembourg-based
Arcelor to create the world's biggest steel empire. The company has revenues of around 88.6 billion dollars
and produces 118 million tonnes of the alloy, nearly 10 per cent of the global steel prodcution, the statement
said.

ArcelorMittal is also launching its new 'Boldness Changes Everything' global advertising campaign, the
statement added.

June 14, 2007

ArcelorMittal defends buyout offer

Mittal Steel, run by L N Mittal [ Images ], has justified its revised offer to buy out minority shareholders in
Arcelor, who have blamed the steel giant of 'shareholder abuse' by offering a lower offer than previously
promised.

An ArcelorMittal spokesperson told PTI the offer made to the remaining Arcelor shareholders was consistent
with the agreement between Mittal Steel and Arcelor signed in June 2006.

The offer was also in line with the subsequent public statements made by the company as well as "the
relative intrinsic values of each of the two companies determined on the basis of a multi-criteria valuation",
he said.

Subsequent to its winning bid of over $33 billion for Arcelor last year, Mittal Steel had fixed an exchange
ratio of 11 shares of ArcelorMittal for seven Arcelor shares.

However, after receiving a "fairness opinion" on the value of shares, the company revised the offer to eight
ArcelorMittal shares for seven Arcelor shares.

"It (the revised offer) has been unanimously approved by the board of directors, which includes a majority of
independent directors," the spokesperson said.

The official said the decision was supported by fairness opinions delivered by Goldman Sachs with respect
to ArcelorMittal and Mittal Steel shareholders.

It was also backed by three banks -- Morgan Stanley, Societe Generale, Fortis -- and one independent
appraiser (Ricol Lasteyrie) with respect to Arcelor shareholders other than ArcelorMittal.

Besides, it would be reviewed by independent auditors in accordance with the provisions of Luxembourg
law, he added.

June 21, 2007

Mittal allowed to buy 49% pie in HPCL unit

The Union Cabinet on Thursday allowed Non-Resident Indian steel baron Lakshmi N Mittal to pick up 49 per
cent stake in state-run Hindustan Petroleum Corp's Bhatinda refinery.

Mittal Investments plans to acquire the stake in the 9 million tonne per year refinery for Rs 3,365 crore (Rs
33.65 billion) through its 100 per cent arm, Mittal Energy Investments Pte Ltd, incorporated in Singapore.

The Cabinet approval was required since current government policy restricts foreign direct investment in
public-sector petroleum refineries to up to 26 per cent.
HPCL [ Get Quote ] will hold 49 per cent stake in the Rs 17,973 crore (Rs 179.73 billion) project, while the
balance 2 per cent would be allocated to financial institutions.

Meanwhile, the Cabinet Committee on Economic Affairs approved the increase in royalty to the States on
coal and lignite by 14 per cent.

The CCEA also approved an increase in buffer stock of sugar by 3 million tonne.

July 25, 2007

Mittal-HPCL to tie funds for Bhatinda refinery

Lakshmi N Mittal and his partner Hindustan Petroleum Corporation [ Get Quote ] Limited will arrange
finances for the Rs 18,919 crore (Rs 189.19 billion) Bhatinda refinery project this month and are aiming to
complete the project by 2010-11.

Mittal Energy Investments Pte Ltd, a subsidiary of Mittal Investments, has parked $110 million in an escrow
account as guarantee for its 49 per cent stake in the 9 million tons refinery project.

"The project is being financed in 1.5:1 debt-equity ratio... while equity is not a problem, for the Rs 10,733
crore (Rs 107.33 billion) debt we are in discussion with State Bank of [ Get Quote ] India-led consortium,"
HPCL Chairman and Managing Director Arun Balakrishnan said.

HPCL will also hold 49 per cent stake in the project while Indian financial institutions would hold two per
cent. Balakrishnan said Guru Gobind Singh Refinery Ltd may also resort to external commercial borrowing
to meet the debt requirement as the difference between overseas and domestic borrowings was 3.5-4 per
cent interest rate.

"As Mittal Energy is issued shares of GGSRL, money from the escrow account will flow into the company.
The escrow money is equivalent to Rs 450 crore, which we have also committed as initial equity in the
project," he said.

Total equity investment by the two firms would be Rs 3,577.50 crore (Rs 35.77 billion) each. The two
partners would appoint three members each on GGSRL board and rotate the chairman's job every two
years.

Petroleum Minister Murli Deora said the project would be completed by 2010-11.
Mittal pays Rs 500 cr for Bhatinda refinery pie

Steel baron Lakshmi N Mittal made a payment of

Rs 500 crore (Rs 5 billion) on Wednesday as the
first instalment for picking up 49 per cent stake in
HPCL's [ Get Quote ] Rs 18,919 crore (Rs 189.19
billion) Bhatinda refinery.

Mittal Investments Chairman L N Mittal [ Images ]

handed over a cheque of Rs 500 crore to HPCL
Chairman and Managing Director Arun
Balakrishnan in New Delhi [ Images ] on Wednesday.

Mittal has picked up 49 per cent in Bhatinda Refinery, the same as Hindustan Petroleum. The balance two
per cent stake is with financial institutions.

Mittal Energy Investments Pte Ltd, a subsidiary of Mittal Investments, has parked $110 million in an escrow
account as guarantee for its 49 per cent stake in the nine million tons Bhatinda refinery project.

The project is being financed in 1.5:1 debt-equity ratio. Total equity investment by Mittal and HPCL would be
Rs 3,577.50 crore (Rs 35.77 billion) each.

Mittal's investment in Bhatinda is the single largest foreign direct investment in the refining sector and his
coming on board has helped the project take off, Petroleum Minister Murli Deora had said earlier.

Orissa, Jharkhand projects: Mittal said on Wednesday he has got assurance from the government of India
for allocation of iron ore mines for his steel plants in Orissa and Jharkhand, but did not say when the project
will commence. He plans two 10 million tonnes steel plants in Jharkhand and Orissa.

Mittal said he is meeting Orissa and Jharkhand chief ministers and is expecting full support from them in
allocation of iron ore mines for the steel plants, coal mines for setting up captive power plant and land for
the projects.
"We are 100 per cent committed to the two projects," Mittal told reporters.

Asked when the projects are expected to be completed he said, "I don't know that". (PTI)

Caption: Mittal Investments Chairman Lakshmi N Mittal (left) hands over a symbolic cheque of Rs 500 crore
($2,407,298.00) to Chairman and Managing Director of Hindustan Petroleum Corporation Limited Arun
Balakrishnan (right) as the Indian Minister for Petroleum and Natural Gas Murali Deora (second from left)
and Minister of State in the Ministry of Petroleum and Natural Gas Dinsha J Patel (second from right) looks
on, during a meeting in New Delhi on Wednesday.
SAIL open for talks with Arcelor Mittal

Public sector Steel Authority of India is open for talks with Arcelor Mittal to explore synergies between the
two companies.

"We are open to discussion with Arcelor Mittal on technological cooperation and exchange of personnel, as
they have more expertise in the area," SAIL [ Get Quote ] Chairman S K Roongta said after releasing his
company's results for the first quarter of current fiscal.

Saying that a businessman should be open to any idea, he pointed out that "there can be a scenario where
it can be a
win-win situation for both the companies".

He recalled that during an official visit to London [ Images ] last year, he had met Mittal there and both had
talked on various
issues.

August 17, 2007

Merger: Arcelor Mittal receives writ of summons

The world's biggest steelmaker Arcelor Mittal said on Friday it has received a writ of summons to appear
before a Dutch court for legal proceedings initiated by Arcelor shareholders seeking an injunction against
the mega merger of both the companies.

"ArcelorMittal announces that it has received a writ of summons on behalf of certain shareholders of Arcelor
S A to appear before a judge in summary proceedings of the court of Rotterdam on August 22. The
claimants are seeking an injunction against the merger of Mittal Steel SA and Arcelor SA," the company said
in a statement.

"ArcelorMittal believes there are no grounds to these claims," it said and added that the steelmaker would
provide further update in due course.

September 06, 2007

Arcelor Mittal to sell American plant

The world's largest steelmaker, Arcelor Mittal, said on Thursday it had received clearance from US anti-trust
authorities to sell its Sparrows Point steel mill for $1.35 billion.

The transaction is expected to close in October, subject to oversight and approval by the recently appointed
court trustee, a company statement said.

The Europe-based steelmaker was ordered by American anti-trust authorities to divest the plant in
Maryland, US, early this year. The sale was a condition set by the US competition authorities to allow the
merger of Mittal Steel and Arcelor.

The plant will be acquired by a joint venture entity sponsored by Esmark Incorporated and Wheeling-
Pittsburg Corp, with participation by industry and institutional investors.

Arcelor Mittal will divest the related railway, intellectual property and other assets associated with the
Sparrows Point facility as part of the transaction.

Arcelor Mittal was formed in July 2006 through the merger of Mittal Steel Co NV and Arcelor SA after a long
takeover battle. The company produces about 10 per cent of the global steel output.
The steel giant's shares traded for $65.17 (euro 48.28) per share in the European markets on Thursday.

September 10, 2007

ArcelorMittal buys major Turkey co

ArcelorMittal bought a 51 per cent stake in Turkey's major steel stockholding company, the steel giant
announced on Monday.

The transaction, subject to antitrust authorities approval, is expected to be completed by the end of this
year, said Gonzalo Urquijo, member of the Group Management Board of ArcelorMittal.

In his statement Urquijo said that "this acquisition is an important step to meet the strong Turkish demand in
all products. The acquisition of this stake in Rozak will allow our steel distribution business in this country to
reach its capacity target in 2010."

Rozak is Turkey's major steelmaker and specialises in production of sheet and plates at its five plants in
Turkey.

In 2006, it shipped 450,000 tonnes of steel with a turnover of 260 million euros.

Turkey is one of the fastest growing steel markets in the world with a dynamic construction sector growing at
10 per cent annually.

September 26, 2007

ArcelorMittal to aid Chinese mill expansion

NRI steel baron L N Mittal-run ArcelorMittal and China's Valin Group will fund a new 4.4 million tonnes strip
mill and a 2 million tonnes cold rolled steel mill of Lianyuan Steel, through a JV company Valin Steel Tube
and Wire in which the two jointly hold a 88.3 per cent stake company.

The new hot mill project is expected to receive approval from the National Development and Reform
Commission within the next few months and the mill could be commissioned as early as July 2009, Steel
Business Briefing reports quoting a Lianyuan Steel official.

The new cold mill is scheduled to come on stream around 2010, as a downstream facility serviced by the
new hot mill. Output from the two mills would mostly target the automotive sector and the Cold rolled mill
may produce 200,000 tonnes per annum of NGO silicon steel.

The Valin Group and ArcelorMittal will directly invest in the two mills, SBB said quoting another Lianyuan
Steel official. However, the official refused to disclose the investment figure, saying that the Valin Group will
share a major portion of the planned outlay, it said.

ArcelorMittal holds a 29.48 per cent stake in Valin Steel Tube & Wire, while the Valin Group holds 30.29 per
cent.
Currently, Lianyuan Steel operates a 2.4 miliion tonne hot strip mill, a 1.5 million tonne cold rolled mill, a
300,000-tonne HDG line as well as a 2 million tonne long product capacity, SBB added.

November 16, 2007

Arcelor-Mittal shortlists 3 sites in Jharkhand

Arcelor-Mittal has shortlisted three sites in Jharkhand for setting up a Rs 20,000 crore (Rs 200 billion) 12
million tonne steel project.

The three sites are at Galudih, Saraikela and Torpa, said Malay Mukherjee, one of the eight members of the
Arcelor-Mittal management team.

A ten-member expert committee is arriving on Saturday to zero in on the three sites, he said adding the
process would take some time.

Mukherjee, who flew in from London [ Images ] along with three other officials in connection with the 7-day
trade fair, said the plant would be completed in three phases and 80 per cent of the detailed project report
was complete.

The plant would require 8000 acres and 600 million tonne of iron ore per year, he said. Arcelor-Mittal has
set up a stall at the trade fair being held on the occasion of its seventh foundation day.

The company, which has its own rehabilitation and resettlement policy, is reportedly waiting for the
Jharkhand government's announcement of its own policy.

The steel giant had signed the MoU with the state government in October 2005 for a mining operation
entailing an investment of Rs 40,000 crore (Rs 400 billion). Chief Minister Madhu Koda assured all help to
the company and it had already got the coal blocks.

November 22, 2007

Mittal's acquisition juggernaut enters China

Indian billionaire Lakshmi Mittal-led ArcelorMittal, the world's biggest steelmaker, has become the first
foreign company to acquire controlling stake in a Chinese steel firm -- China Oriental -- in a deal valued at
about $1.6 billion (over Rs 6,000 crore).

Hong Kong-listed China Oriental is a holding company for Heibei Jinxi Iron and Steel Company Limited, one
of China's largest suppliers of steel billets.

According to a filing with the Hong Kong Stock Exchange, ArcelorMittal acquired 73.13 per cent stake in
China Oriental for about Hong Kong $12.2 billion (US $1.6 billion).

ArcelorMittal acquired 820 million shares on November 6, amounting to a 28.02 per cent stake, which it has
raised to 2.14 billion shares or a 73.13 per cent stake since then. The two companies are yet to formally
announce the change in the controlling shareholding structure of China Oriental, pending the transfer of the
shares.

ArcelorMittal said in a statement from Luxembourg that it "is in talks with the controlling shareholders in
China Oriental Group Ltd about future co-operation and including increasing its stake in the company."

However, ArcelorMittal confirmed that it owns a 28 per cent stake in COGL. Trading in COGL shares has
been suspended since November 7, pending the release of "an announcement which may be price sensitive
in nature," the company said in a filing with the exchange.

ArcelorMittal is already present in most of the major steel-producing countries. Mittal has been trying to get
a breakthrough in China, but his ambitions have been hampered by the government's prohibitive policy
against foreigners owning control of steel firms, terming it has a strategic sector.

However, Mittal succeeded in his latest attempt because COGL is one of the few Chinese steel firms that
are privately owned as well as listed outside mainland China.

His attempts to acquire a 38 per cent stake in Laiwu Steel, China's ninth-largest steelmaker, is pending for
more than a year for want of some regulatory approvals. Mittal is looking at COGL as the entry point to
China, the world's biggest producer as well as consumer of steel.

Founded in 1999, China Oriental went through a management buyout and a capital injection by a foreign
strategic partner during 2001-03, and was transformed from a state-owned enterprise to a private company.

COGL is located in Hebei Province, the largest and richest iron ore-producing region of China. The strategic
location gives it logistical advantages such as easy access to raw materials and proximity to railways and
ports. Its facilities are also close to China's major industrial region where most of its key customers are
located.

December 13, 2007

ArcelorMittal buys majority stake in China Oriental
The world's largest steel company ArcelorMittal, led by India-born Lakshmi Mittal [ Images ], on Thursday
said it will acquire a majority stake in steel maker China Oriental Group for about 6 billion Hong Kong
dollars.
The pact with controlling shareholders would enable the steel giant to raise its equity stake in the Chinese
company to 73.13 per cent from existing 28.02 per cent.

ArcelorMittal would make an offer of about 6 billion Hong Kong dollars to buy the shares owned by the
controlling shareholders.

The offer price for each share would be around 6.12 Hong Kong dollars, which represents the price at which
ArcelorMittal acquired a 28 per cent stake in China Oriental from Chen Ningning in November 2007, it said
in a statement.

Moreover, it would offer an amount of 0.235-0.706 Hong Kong dollars per share as part of the cash
consideration for a put option granted by ArcelorMittal to the controlling shareholders of China Oriental
shares, which was not granted to other shareholders.

Following the shareholders' agreement, ArcelorMittal would purchase the existing 45 per cent stake of
controlling shareholders over an agreed time period.

However, the deal is subject to anti-trust clearance by the Ministry of Commerce and the State
Administration for Industry and Commerce of the People's Republic of China (PRC).

The controlling shareholders (including Wellbeing Holdings Limited and Chingford Holdings Limited, solely
owned by Han Jingyuan, Chairman and Chief Executive Officer of China Oriental), currently own
approximately 1,320 million China Oriental shares, which represent an approximate 45 per cent equity
interest in the company.

"The purchase of a 28 per cent stake in China Oriental earlier and the signing of the Shareholders'
Agreement allow ArcelorMittal to be better positioned to participate in the

attractive growth of the PRC construction steel market and to develop China Oriental into a leading producer
of heavy sections, focusing on leadership, quality and sustainability," Lakshmi Mittal said in the statement.

ArcelorMittal added that it intends to maintain China Oriental's listing status after the close of the offer.
Earlier this month, the company had entered into a business cooperation agreement with China Oriental to
share technologies and technical expertise.

February 04, 2008

Will ArcelorMittal's steel plant come up in Jharkhand?

Torpa is looking for a second chance to migrate from a poor village to a modern urban cluster but tension is
building between those who want development and those against it.
For two decades, National Hydel Power Corporation (NHPC) proposed, and some local tribal groups
opposed, the setting up of the Koel-Karo hydro-electric project there, and it was finally abandoned last year.

Today, the pro-developers are looking forward to ArcelorMittal's proposed 12-million-tonne steel plant to
transform what can best be described as a struggling hamlet.

Arraigned against them are some tribal groups, organised under a religious community who see the
inevitable acquisition of land and the steel plant as a process that will change the face of Torpa for worse.

Locals say that part of one village will be displaced to make way for the plant though the actual plant site
has not been indicated yet. In any case, much of the area is already devastated by sand mining and
brickfields.

The Koel-Karo project involved the construction of a dam ahead of the confluence of the Koel and Karo
rivers. This would have created a huge lake for drawing water for year-round cultivation, generated 710 Mw
of power and prevented flash floods common in this hilly area.

It would have required up to 50,000 acres of land (depending on the depth of the reservoir) and displaced
three villages and around 1,500 people.

When abandoned, 239 acres had been acquired. This displaced 169 people and their nominees were
employed at the project site first. After the project was shelved, they were shifted to other NHPC projects.

If it had come up, the project would have provided direct employment to 10,000 people and indirect
employment to 50,000.

"It was a huge shock for us and we were condemned to live in a village. Torpa would have become a town,"
said a top officer at the block headquarters in charge of the revenue department.

The Koel Karo project ultimately came to be dropped because of strident opposition by the Torpa sitting
MLA Koche Munda of the BJP. Munda's supporters said it was because the people felt the reservoir would
help people downstream and not them. Koche Munda could not be contacted for his response.

In February 2001, police firing on a crowd protesting the Koel Karo project resulted in the death of eight
people, including a policeman.

The opposition then was led by N E Horo, former MP and former minister of undivided Bihar and president
of the Jharkhand Party. His Jharkhand Party has renewed the struggle against the land acquisition and will
be staging protest meetings at Torpa against the Mittal steel project, he said.

Proponents of development -- and this includes several locals -- point out that the area has no irrigation and
manages to raise one crop dependent on the monsoon. Locals are forced to migrate for the rest of the year
to subsist.
Locals say tribals here have to fetch drinking water from the river miles away, live with prolonged power cuts
even if they can afford a power line, and survive as migrant unskilled labourers elsewhere for six months.

"This so-called noble life is being preserved by the opposition," the locals complained.

"The tribal lifestyle is mere subsistence because nothing grows here and this subsistence is being
maintained to serve the interests of some who fool gullible local people," the revenue department official
alleged.

This sentiment was echoed by Satish Sharma, a local who also ran the local phone booth and camera and
photography shop rolled into one. He pointed out that a steel plant in the area will require literate people, but
the presence of several local schools, meant such resources were available.

"Those who are opposing the plant are doing so because we all realise that the focus of local life will shift
from the religious congregation to the factory and the trade unions," he said.

Everyone in the shops and in the shacks selling rudimentary food and sweets grumbled about the brand of
the congregation-led opposition politics that had blocked development in the area over the years.

Evidently, the optimism of Sharma is not universal. This resentment could well grow into a conflict unless
steps were taken to reach a solution, in the way such divisions have led to communal violence in
neighbouring states like Orissa, they admit

February 07, 2008

ArcelorMittal sets team to finalise blueprint for India plants

ArcelorMittal is formulating a 15-member team to finalise the blueprint for setting up the 12-million-tonne
integrated plants in Jharkhand and Orissa at a cost of about Rs 80,000 crore (Rs 800 billion).

"Our Group Management Board has approved the constitution of a 15-member technical team for our steel
projects in Orissa and Jharkhand under the supervision of our Chief Technical Officer Pierre Gugliermina,"
ArcelorMittal Brazil [ Images] Chief Executive Officer Jose Armando Campos told PTI.

He re-affirmed ArcelorMittal's determination in completing these projects and said that Indian engineering
company M N Dastur & Co will prepare the detailed project report for these plants.

Campos said the study conducted by the CTO on these projects would complement the Dastur & Co's
study, which is likely to be over by June.
ArcelorMittal is said to have identified Torpa and Kamdara blocks in Khunti and Gumla districts of Jharkhand
as prospective sites for its proposed plant.

South Korea's Posco, the world's third largest steelmaker by output, is also in the process of setting up a 12-
million-tonne greenfield manufacturing plant in Orissa.

Campos said, "Our Brazilian operations are a classic example of integrating plant management with
Corporate Social Responsibility. Our company is the most respected in Brazil and we hope to replicate this
model in India as well."

ArcelorMittal's Brazilian operations contribute about 10 per cent to the Group's operating margins of about
$17 billion.

ArcelorMittal spokesman Stefan Schwarz said the company's immense experience in setting up projects
worldwide, coupled with local economic development, would see it through in these two Indian states.

"Even if the projects are not identical, the community-based approach is definitely something we can use as
an instrument to ensure that the local population is benefited," Schwarz said.

The company would provide adequate employment to the people of the project sites besides providing
indirect employment to thousands of locals in due course of time, he said. The design of these plants
envisage that the iron and steel making would be done through integrated blast furnace route.

Trying to avoid any opposition to the company's projects, AreclorMittal Head (Corporate Social
Responsibility) and Secretary to the GMB, Remi Boyer said the company would be compliant with Orissa
government's resettlement and rehabilitation policy.

"We do have a detailed study ready from Ecosmart and we will work on it with the government," Boyer said.

ArcelorMittal is still expecting iron ore block for meeting its captive requirements from the state
governments.

However, the company along with GVK Power has been granted Seregarha Coal Block for generating
power of about 750 Megawatts.

February 11, 2008

ArcelorMittal close to Orissa land buy

ArcelorMittal has moved a few steps forward in setting up its 12-million tonnes steel plant in Keonjhar district
of Orissa. The company is close to acquiring two-thirds of the land required , firmed up its resettlement and
rehabilitation plan, and is close to freezing the project details.
"We are in the process of being allotted 7,000 acres of the 10,000 acres we need for the steel complex. This
has been principally-approved by IPICOL, the single window clearance authority of the Orissa government
for land, water and power," said Remi Boyer, Secretary General of the Group Management Board and Vice
President Corporate Social Responsibility, ArcelorMittal.

The steel plant would require about 7,000 acres while the power plant and township would require another
3,000 acres. "We are in an advanced stage in land acquisition; it's 90 per cent done," added Boyer. IPICOL
is acquiring the land on behalf of ArcelorMittal. Boyer was in Brazil [ Images ] with a team of Indian
journalists visiting ArcelorMittal's Brazil facilities.

Dastur & Co, which was appointed by ArcelorMittal to study the project parameters and suggest the site
layout, is likely to submit a Detailed Project Report by June 2008, based on which the company would
contract out its equipment orders to suppliers.

In October, ArcelorMittal had set up a 15-member technical group consisting of specialists drawn from
across different plants and geographies, which is backing Dastur & Co. The company has also hired two
general managers each for Orissa and Jharkhand for Corporate Social Responsibility.

"We are challenging the site layout prepared by Dastur & Co to see how we can have the best-in-class steel
operations," Boyer told Business Standard. The site layout provides for where the blast furnace should be or
where the power plant should be located.

IL&FS Ecosmart, which offers consulting services to project developers and was assigned by Arcelor Mittal
to prepare an R&R plan for its Orissa project in line with the state government's R&R policy, submitted its
report in December 2007. "We plan to discuss this with the state government to prioritise things," said
Boyer. Ecosmart went to villages and interviewed people.

The project is expected to displace 15,000-17,000 people in 3,000 villages in Keonjhar district and the
Mittal's are keen to get its R&R plan right.

"When we implement the project, it is important that we do the R&R really well," added a spokesman for
ArcelorMittal.
March 20, 2008
Essar joins race to buy ArcelorMittal's mill

Essar Steel [ Get Quote ] has emerged as one of the potential suitors for the Sparrows Point, Md., mill of
ArcelorMittal SA, with leading Russian steelmakers, according to a report.

"The most prominent suitors continue to be Russian producers, although India's Essar Group also has been
mentioned prominently, according to market sources," the Metal Bulletin (MB) reported, adding that Essar
has been the most recent company to express interest and has begun negotiations with Luxembourg-based
ArcelorMittal.
JSC Severstal, Evraz Group SA and OJSC Novolipetsk Steel are all considered in the running for the plant,
which the US Justice Department ordered ArcelorMittal to divest as part of anti-trust concerns related to
tinplate production in the eastern United States.

"Essar has been in, and so have Severstal and Evraz," one industry source with knowledge of the situation
said. "They all want it for the same reason: They see this market as a good one," MB said.

A Essar Steel spokesman told PTI that the company was open to good investment opportunities, but would
not like to comment on any specific proposal.

Essar already owns Algoma Steel Inc., Sault Ste. Marie, Ontario, and the Minnesota Steel Industries LLC
operations that are set to begin construction this Spring on the Minnesota Iron Range.

ArcelorMittal had earlier signed an agreement to sell the mill to the Esmark-led consortium, but the deal fell
through when the company couldn't pull a financing package together.

It put the mill back on the market, with various potential buyers looking into a purchase, it said.

The Justice Department in August 2006 moved to block the merger of Arcelor SA and Mittal Steel Co. NV
based on the contention that it would reduce competition for tin mill products in the eastern United States.
Mittal was ordered to sell the Sparrows Point plant to allow its merger with Arcelor to gain Justice
Department approval, the bulletin added.

May 06, 2008

Arcelor cuts its holding in China Oriental

ArcelorMittal has sold part of its stake in a Chinese steelmaker it wants to control so it can meet the
minimum free float requirement in Hong Kong where the shares trade.

The world's largest steelmaker, run by London-based billionaire Lakshmi Mittal [ Images ], sold a 17.4 per
cent stake in China Oriental to ING Bank and Deutsche Bank for HK$2.95bn ($378m).

• ArcelorMittal in talks with Angang Steel

• Arcelor plans $10bn Indonesia deals

The disposal restores the free float in China Oriental to 25 per cent.

ArcelorMittal and Han Jingyuan, China Oriental's chairman and chief executive, controlled 92 per cent of the
company after a general offer closed in February.
The general offer was ordered by the Securities and Futures Commission, Hong Kong's market regulator, in
December. The SFC ruled that Mr Han had been acting in concert with ArcelorMittal last year when he
repelled a rival offer for the company by Diana Chen, a former China Oriental director.

Last year, ArcelorMittal paid $647m for Ms Chen's 28 per cent stake in China Oriental. It also negotiated an
agreement with Mr Han to acquire his controlling 45 per cent stake, but that deal has yet to be approved by
Chinese regulators, who have been reluctant to let foreign companies take control of local steelmakers.

• Mittal eyes solution to Chinese puzzle

The SFC's order that ArcelorMittal make a general offer for all of China Oriental's shares had threatened to
place it in breach of Chinese restrictions on foreign control.

With the share sale to ING and Deutsche, ArcelorMittal's stake has fallen back to 29.6 per cent, from 47 per
cent. The banks agreed to sell the shares back to ArcelorMittal if it gets a controlling stake in China Oriental
on its own.

ArcelorMittal is keen to increase its foothold in the world's largest steel market. It has held talks with Angang
Steel, China's number two steelmaker. It also has a 32 per cent stake in Hunan Valin Tube Steel & Wire in a
deal that is the first - and so far only time - the Chinese government has allowed a foreign business to take a
strategic stake in a large domestic steelmaker.

ArcelorMittal first attempted to enter the China market with a $900m offer for a 38 per cent stake in Laiwu
Steel, another small Chinese mill. It was forced to abandon the effort late last year after waiting two years
for Beijing [ Images ] to approve the transaction.

ING paid HK$1.68bn for a 9.9 per cent stake in China Oriental, and Deutsche paid HK$1.27bn for 7.5 per
cent of the company. Both banks paid HK$5.79 a share, representing a 5.4 per cent discount to
ArcelorMittal's general offer price.

China Oriental's shares, which were suspended in February and resumed trading on Friday afternoon, fell
4.8 per cent to HK$5.72.
May 14, 2008

$15-bn M&A shares: Mittal gets go-ahead

ArcelorMittal may not have to pay much in cash when it next goes for merger and acquisitions as its
shareholders have authorised the board to issue fresh shares worth an estimated $15 billion for such
potential deals.

At an extra-ordinary general meeting held in Luxembourg late Tuesday, ArcelorMittal shareholders

approved a proposal to issue 147 million fresh equity shares, representing about 10 per cent its outstanding
share capital and worth $14.3 billion at the current share price of $97.23.
Authorisation for issuing shares comes along with power to limit or cancel preferential subscription rights of
existing shareholders for a period ending on November 5, 2012.

Last year, shareholders had authorised the board to issue stock options and other equity-based grants to
the employees within limits of authorised equity capital of 1.47 billion.

However, the board sought to further enlarge the equity capital to 1.617 billion in order to allow the issuance
of new shares "for merger, acquisitions or similar transactions."

In its notice seeking shareholders' nod at the EGM held on Tuesday, the board said that it "considers it of
paramount importance in the globalisation context of the steel industry to be in a position to issue additional
shares as a mean to enter into potential growth opportunities and consequently, conclude mergers,
acquisitions or any other similar transactions, amongst others, by way of exchange of shares."

The board also noted that such authorisation is justified 'taking into consideration the company and its
subsidiaries' need to enter into potential growth opportunities while offering shares in exchange rather than
cash, which shall demonstrate the strong value plan and strategy development scheme of the management.'

June 02, 2008

ArcelorMittal expects India projects to start next year

ArcelorMittal, which plans to set up two 12 million tons per annum plants in India, will begin investing 20
billion dollars starting 2009, a company official has said.

"The company expects to break ground on one of the Indian projects 'before the end of 2009'," CNN quoted
ArcelorMittal's London-based head of investor relations Julien Onillon as saying last week.

The two identical projects are to come up in the states of Jharkhand and Orissa and would add 24 MT
annual steel production capacity.

The company executive also did not rule out a rise in cost of implementing the projects, which were
announced as early as 2005 (Jharkhand) and 2006 (Orissa).

"India is a very exciting growth story for us," Onillon said, adding that "India's per capital consumption of
steel is only 40 kg, compared with a figure of 500 kg for Europe and 270 kg for China."

According to the report published on the CNN website, Onillion does not expect the company to face any
problems over its proposed investment in India.

Last month, the company announced a new leadership for India with Vijay Bhatnagar as Country CEO for
India and Sanak Mishra as CEO, Greenfield Operations.
The first Indian project was likely to be developed in two phases, each of six million tonnes and is subject to
market conditions.

"We don't want to destabilise the market, so it could be in three phases," he noted.

July 25, 2008

ArcelorMittal buys 70% pie in Brazilian firm

World's largest steel producer ArcelorMittal today said it has acquired 70 per cent stake in Brazilian steel
processor Manchester Tubos e Perfilados SA.

This comes close on the heels of steel magnate L N Mittal-led company acquiring 50 per cent stake in
Gonvarri Brasil, a steel service facilities provider for industrial and automotive sectors.

With the acquisition of Manchester and its partnership with Gonvari, ArcelorMittal would widen its product
offering in the distribution segment in Brazil [ Images ], a statement from the global steel player said.

It added that the new acquisition would reinforce company's downstream position in Brazil and help it target
the country's construction market as well.

Post-acquisition of the Manchester, ArcelorMittal said it would offer an extended range of flat products,
including coils and blanks, profiles, tubes and pipes.

"Penetrating this fast growing market with a diversified offer, from tubes to structural profiles, is considered
as a great opportunity for the group," Michel Wurth, member of ArcelorMittal's group management board
and in-charge of Steel Solutions and Services said.

Manchester Tubos, which mainly serves the construction industry, has an annual capacity of 240,000 tons
for end products, and 60,000 tons for processed products. Last year, its net sales stood at 270 million reals
(about $170.45 million). The company employs 500 people.

August 11, 2008

Orissa: ArcelorMittal hopes to take possession of land soon

ArcelorMittal said it has garnered local support from Orissa's Keonjhar district for proposed 12 MTPA steel
plant and hopes to take possession of the required land by the end of the year.

"We are hopeful of taking physical possession of the land by the end of the current year to start construction
for the greenfield steel project. The pre-land acquisition process has already been successfully initiated,"
ArcelorMittal CEO, India, Vijay Bhatnagar told PTI in Bhubaneswar.
The response from local residents during the first Gram Sabha, held on August 6 as part of the pre-land
acquisition process, was positive toward the Rs 40,000-crore (Rs 400 billion) project, which requires 7,750
acres of land, he said.

The Gram Sabhas conducted by the Keonjhar district administration in two villages in the project site passed
off undisturbed as people signed the resolution supporting the plant unanimously barring some stray
protests in the vicinity, he added.

"If everything moves smoothly as per plans, Gram Sabhas in all the 14 villages in the proposed site will be
completed in about three months," Bhatnagar said.

The company would acquire the land after the state issues notification on the completion of Gram Sabhas.

Of the 7,750 acre land required for the project, about 6,000 acres would be needed for the steel plant, 1,000
acres for the captive power plant and about 750 acres for the township.

The company's chief of greenfield projects in India Sanak Mishra said, of the land identified for the project
about 2,500 acres was government land and the rest belonged to private entities.

About 10 per cent of the area was identified as forest land and the government had initiated the process for
conversion as per the laid down procedures, he said.

The construction for the project, to be taken up in two phases, would commence once the land is acquired,
Bhatnagar said, adding that the first phase of six MTPA capacity plant would be completed in four years.

The project, billed as one of the largest of its kind in the state, is expected to generate about 9,000 direct
employments besides providing over 40,000 indirect jobs, both Bhatnagar and Mishra said.

ArcelorMittal is also poised to set up an industrial training institute over an area of 10 acres near the project.

The ITI, where admission would begin next year, would churn out 300 skilled manpower annually, they said.
Apart from getting absorbed in the project, the students would also find job avenues elsewhere in view of
shortage of skilled personnel faced by the industry.

September 10, 2008

Mittal sees no M&A targets in India

Lakshmi Mittal [ Images ], known for creating the world's largest steel empire mostly through merger and
acquisitions, today said that there was no Indian company on his takeover radar.

"It is very unlikely that we get an M&A opportunity in India as Indian entrepreneurs are doing very well and
whatever expansion we are planning in India would be through greenfield projects," Mittal told journalists.
"It is very unlikely for us to do an M&A deal in India," he said.

Globally, ArcelorMittal has spent $21 billion in merger and acquisitions over the past couple of years in
steel, iron ore and distribution deals, most of which have been in the US and Mexico, Mittal said.

The company plans to invest $50 billion across the world, excluding India, to expand its steel making
capacity from 110 MT to 130 MT by 2012, he said.

However, this investment would be mostly in brown-field expansion at its existing facilities.

Besides, the company plans to expand its iron ore capacity from 45 MT currently to 110 MT by 2012, which
would be about 75 per cent of its requirements.

Some of the recent deals announced by Mittal include acquisition of Koppers' Monessen Coke Plant in the
US, a 49-per cent stake in Brazilian mining company MPP, an electrical steel JV agreement with Valin in
China, acquisition of Brazilian iron ore miner London [ Images ] Mining Brasil and acquisition of coking coal
producer Concept Group.

The company has recently also acquired 100 per cent holding in Rolanfer Recyclage of France [ Images ],
besides acquisitions like Astralloy, Mid Vol Coal Group, Bayou Steel and Canadian metals recycler
Bakermet. MORE PTI SKB BJ

Earlier this year, ArcelorMittal, whose CFO Aditya Mittal is said to keep an 80-page folder of potential
takeovers on his desk, received its shareholders' nod for an equity capital expansion to meet its future M&A
requirements.

At an extraordinary general meeting on May 13, the shareholders authorises the board to increase the
company's share capital, so that it is in a position to issue shares for entering into potential growth
opportunities such as merger and acquisition.

The company has said that it 'considers it of paramount importance in the globalisation context of the steel
industry to be in a position to issue additional shares as a mean to enter into potential growth opportunities
and consequently conclude mergers, acquisitions or any other similar transactions, among others, by way of
exchange of shares."

Recently, ArcelorMittal CEO Lakshmi Mittal's son and the company's Chief Financial Officer Aditya Mittal
had mentioned in a media interview about an 80-page thick folder on his desk of potential takeovers with
three deals a page.

"That is the number of global opportunities," he had said.

Aditya is understood to have been the key man behind Mittal Steel's hostile takeover bid for Arcelor as well
as a number of other M&A deals.
"I have been personally been involved in 20, but in charge of about 50," 32-year old Aditya told the Sunday
Times.

The publication noted that "he has probably headed more acquisitions than any young man alive."

The board has been authorised to increase the authorised share capital by euro643.86 million, to about euro
7.08 billion, in order to "allow the issuance of new shares, within the limit of the authorised share capital, for
mergers, acquisitions or similar transactions."

October 29, 2008

Centre returns Jharkhand proposal for mines to ArcelorMittal

The Centre has returned Jharkhand government's recommendations for allotting prospecting licence of
Karampada iron ore mines to Arcelor Mittal due to technical reasons, a move that may further delay the
steel major's project, which is already facing stiff resistance from locals.

Seeking clarification on the proposal, the mines ministry has asked the state government to bifurcate the
recommendations as a large portion of the mines falls under notified area category.

As per mines and minerals (Development and Regulations) Act 1957, different sections need to be applied
for proposals of notified and de-notified areas.

"In case when proposals for re-grant and new areas are mixed up, states are asked to disaggregate them,"
a senior government official said.

Acknowledging the ministry's stand, an official in Jharkhand's Mines department said the state would soon
send
two different proposals to the Centre, mentioning notified and de-notified areas of the mine.

The government has already granted mining lease for 500 hectares of Karampada mine in West Singbhum
district to L N Mittal-led company for meeting iron ore requirement of the proposed steel plant of 12 million
tonne annual capacity.

In addition to it, Jharkhand government had recommended allotment of 1,087 hectares of Karampada
reserved forest to the steel major for prospecting.
As 65 million tonne of the iron ore reserves in Karampada mine would prove insufficient for the maga
project, the firm is on a lookout for more resources.

ArcelorMittal would require about 600 MT of iron ore in a span of 30 years to operate its Rs 40,000 crore
(Rs 400 billion) steel plant to optimum capacity.

The company has announced Torpa-Kamdara blocks of Gumla and Khunti districts as the potential site for
its integrated steel plant in Jharkhand.

Pursuant to announcement of the site, the world's largest steelmaker has applied for about 11,000 acres of
government and private land for setting up the steel plant.

The company, however, is facing protests from local tribals, who are unwilling to part with even an inch of
land for the project.

Unfazed by a series of protest rallies taken out by the villagers, the company is hopeful of an early
resolution.

November 03, 2008

ArcelorMittal approaches Bengal govt for land

ArcelorMittal has approached West Bengal [ Images ] government for land at Rajarhat, as it wants to set up
an office there, Chief Minister Buddhadeb Bhattacharjee [ Images ] said on Monday.

Billionaire L N Mittal [ Images ], who runs the steel behemoth, is keen to set up a central office in Rajarhat
near the city, for which the company has sought land from the state government, Bhattacharjee said in
Kolkata [ Images ], inaugurating the 36th World Congress on Housing Science.

He said other companies such as Airtel and ICICI Bank [ Get Quote ] had also approached the government
for land at Rajarhat.

Mittal was in the process of setting up greenfield plants in Orissa and Jharkhand.

Bhattacharjee said land prices were moving upward and that the asking rate per acre at Rajarhat was Rs 7
crore (Rs 70million).

He said housing was a major problem in the state and that the government was taking steps to set up
satellite townships at Dankuni, Domjur and Baruipur.
Bhattacharjee said since the government alone would not be able to provide housing for all, the PPP
(public-private partnership) model was an ideal alternative.

December 15, 2008

ArcelorMittal to reduce stake in German firm, earn $1 bn

ArcelorMittal said on Monday it would cut its stake in Germany-based plate making firm Dillinger Hutte by
17.85 per cent, a deal by which the L N Mittal-led company would earn about $1 billion.

ArcelorMittal has entered into binding agreements to reduce its economic and voting interest in Dillinger
Hutte from 51.25 per cent to 33.4 per cent in line with existing governance rights through sale of shares to
Struktur-Holding-Stahl GmbH & Co KG aA and Dillinger Hutte Saarstahl AG, a company statement said.

"We have chosen to optimise our stake in Dillinger Hutte in order to bring our economic and voting rights in-
line with our existing governance rights in the company. We will continue to be a key industrial partner to
Dillinger Hutte," said ArcelorMittal Group Management Board Member Michel Wurth.

Dillinger Hutte enterprise value is estimated to be about $2.6 billion, the statement said and added the
combined proceeds from the transaction, comprising sale of shares and the dividend proposed for the year
2008, amount to euro 777 million ($1 billion).

The German firm is one of the leading plate mills in Europe, based in Saarland. The bulk of its production is
delivered to the energy sector.

In 2007, Dillinger Hutte shipped approximately 2.3 million tonnes of heavy plate. The company currently
employs 5,230 staff.

Last month, ArcelorMittal had announced a job cut scheme aimed to axe as many as 9,000 jobs globally.

The company has had several cross cutting measures such as a 35 per cent output cut amidst decline in
demand for steel due to the global economic downturn.

July 15, 2009

ArcelorMittal's Rs 40,000-cr project put on hold for 2 yrs

The world's largest steel maker, ArcelorMittal, has put on hold its proposed Rs 40,000-crore (Rs 400-billion)
steel plant in Orissa's Keonjhar district for at least two years, as the global demand for steel is stagnating.

However, the company will go ahead with its plans in Jharkhand, and has secured iron ore mines and coal
linkages to the project, company sources told Business Standard.

An e-mail reply from the steel major said it was not expecting its projects in India to start before 2014.
"We have paused our growth projects at present for obvious reasons. The projects in India are greenfield
ones that have considerable lead time, as they involve land acquisition, environmental concerns, etc. But we
remain committed to our investment in India," said the e-mailed reply.

The London-based company was planning to start construction of the Orissa and Jharkand projects -the
company's only new steel plants globally, each with a proposed yearly capacity of 12 million tonnes - by the
end of this year, with a commissioning deadline of 2014.

The projects were announced in 2005-end, a time when global economy was sound and demand for steel
was bright.

A source said apart from the dwindling demand for steel, land acquisition has been a major hindrance for
progress of the project in Orissa. The project requires about 8,000 acres in the tribal Patna tehsil in
Keonjhar district.

Tribals, with the support of activists, were opposing the project. The steel major also faced tribal opposition
for its Jharkhand project.

Sources said the Orissa government could mobilise only about 1,500 acres and the company had also
delayed payment for the acquired land, giving an indication to the state government that it was going slow
on the project. The company finalised the detailed project report for the Orissa project only by the end of
2008.

Sources said the delay in projects would cause capital escalation by about 50 per cent. The company will
have to spend an additional $9 billion for completion of the projects, due to the delay, a Credit Suisse report
had estimated.

South Korean steel maker Posco's $11.6 billion Orissa project is also facing regulatory hurdles, along with
issues of land acquisition. Tata Steel's [ Get Quote ] new projects in Jharkhand, Orissa and Chhattisgarh
have been delayed by two to three years due to land acquisition problems and other issues.

July 29, 2009

ArcelorMittal posts $0.8 bn loss in Q2

A rcelorMittal reported on Wednesday a net loss

of 0.8 billion for the second quarter of this year

due to heavy inventory write-downs and workforce
reduction programmes.

"The loss in the second quarter of 2009 resulted

from exceptional charges amounting to $1.2 billion
primarily related to write-downs of inventory ($0.9 billion) and provisions for workforce reductions ($0.3
billion)," L N Mittal-promoted company said.

The company had a profit of $5.8 billion in the same quarter of the last fiscal.

ArcelorMittal saw its sales plunging by nearly 60 per cent to $15.2 billion in the reporting quarter compared
to the period a year ago due to fall in steel demand and prices.

"The main reason for the decline continues to be the extreme weakness in demand for steel products in
2009 as a result of the global economic crisis, along with a steep fall in prices," it added.

However, the company is hopeful of a demand revival in the second half of the year and is mulling the
rollback of 50 per cent production cuts at some of its facilities.

"In recent weeks, we have started to see some initial signs of recovery, as a result of which we are now
planning to re-start production at some facilities. Provided there are no further unexpected economic
deteriorations, we should see continued gradual improvement throughout the second half of the year," Mittal
said.

August 07, 2009

ArcelorMittal to use India, China as sourcing hub

A rcelorMittal, the world's largest steel producer,

plans to make India and China the sourcing hub

for its greenfield projects equipment to bring down
overall costs.

Speaking on the sidelines of an event organised

by the Confederation of Indian Industry,
ArcelorMittal Design & Engineering Centre CEO
Pierre Jonette said: "Our main objective is to bring
down the total project cost by 20-22 per cent across all the green projects. We have internally decided to
increase sourcing from local low cost destinations for most of our greenfield projects."

Jonette pointed out the cost of equipment in India and China were about 30-40 per cent cheaper than in
Europe and other markets. Also, there was a greater scope for localisation in India and China compared to
other markets, he added.

Cost of equipment roughly constituted half of the total project cost. India stands to be the biggest beneficiary
as the two of the biggest greenfield projects of ArcelorMittal are being planned in India.
The company has plans to build two steel plants each with a capacity of 12 million tonnes each in the state
of Orissa and Jharkhand. The two projects are delayed because of government approvals, the targetted
schedule for both the projects is end of 2013 or beginning 2014.

Despite the delay Jonette said, there would be no downsizing. The company is still working on the capex,
product-mix, lay out etc.

The company also had new projects in Saudi Arabia, Kazakhstan and Brazil [ Images ], he said.

While from India the company was looking to buy equipment such as boilers, steel structures, infrastructure,
from China, it was looking at sourcing blast furnace, coke oven and sinters, said Jonette. The in-house
dedicated design and engineering centre of ArcelorMittal, which was inaugurated last year will help in
greater optimisation of resources and downsizing cost.

"The slowdown has opened up more opportunities for AMDEC. We are receiving a lot of requests for
technical support from other ArcelorMittal plants around the world. For now, we will be working exclusively
for ArcelorMittal projects. Later on, if we obtain a good name and we might be open to consulting others as
well," Jonette said.

AMDEC is primarily responsible for making plan layout, designs, equipment sourcing, etc for all the
ArcelorMittal projects. AMDEC at present has a headcount of 60 people in the Kolkata [ Images ] office. The
target is to scale it up to 200-250 in another 3-5 years.

REFRENCES FOR THIS

http://www.rediff.com/money/

MERGER OF DOFASCO WITH ARCELORMITTAL

History
Hamilton, Ontario, Canada, has been the home of ArcelorMittal Dofasco since 1912, when C.W. Sherman
founded the Dominion Steel Casting Company to manufacture castings for Canadian railways. Later
named Dominion Foundries and Steel, the company merged with its subsidiary, Hamilton Steel Wheel
Company in 1917. The name was officially changed to Dofasco Inc. in 1980.

The company has been a pioneer of innovative steelmaking throughout its history. In
1918, Dofasco fired up the first universal steel plate mill inCanada. Dofasco was the
first company in North America to adopt basic oxygen furnace technology, in 1954. In
1996, Dofasco fired up an electric arc furnace and slab caster, the first of its kind for
any fully-integrated steelmaker on the continent.

Dofasco became the first Canadian manufacturer to introduce Profit Sharing in 1938.
Profit Sharing remains today the centerpiece of a unique employee relations
program.

In 2006, Dofasco was purchased by Europe-based steelmaker Arcelor. During this

transition, Arcelor merged with Mittal Steel to become ArcelorMittal. Today
ArcelorMittal is the world’s largest steelmaker accounting for nearly 10% of global
steel production.

INTRODUCTION

ArcelorMittal Dofasco is a supplier of high quality flat rolled steels.

Strategically located in the City of Hamilton at the western end
of LakeOntario on the St. Lawrence Seaway, ArcelorMittal Dofasco is based in
one of Canada’s busiest Great Lakes seaports with easy access to markets
in Canada, the U.S. and around the world.

the art facilities that are among the most efficient, flexible and
technologically advanced in North America. These include three coke plants,
two operating blast furnaces, a basic oxygen steelmaking furnace, an electric
arc furnace, two slab casters, a hot strip rolling mill, pickling lines, cold rolling
mills, annealing and tempering facilities, galvanizing lines, an electrolytic
tinning line and two tube mills. The company produces hot rolled, cold
rolled, galvanized, ExtragalTM,GalvalumeTM, tinplate, chromium-coated and
pre-painted flat rolled steels, as well as tubular products. This wide range of
steel products is sold to customers in the automotive,construction, energy,
manufacturing, pipe and tube, appliance,packaging and
steel distribution industries.
All of ArcelorMittal Dofasco's facilities in Hamilton are registered to ISO 9001 / TS
16949 , ISO 14001 , and OHSAS 18001 registered.

Arcelor Mittal Dofasco has one of the most innovative, productive and empowered
workforces in North America. The goal of our workforce has shifted from growth
measured by capacity, to growth measured by value-added steelmaking. As a result,
ArcelorMittal Dofasco has become one of the most profitable steel operations in North
America based on earnings per ton.

Each one of our 5,300 skilled employees is part of a pro-active team, entrusted to suggest
better ways of working, maximize the performance of new technologies, discover ways to
improve quality, fine-tune or completely re-build systems, enhance customer support,
and find ways to save money for both our customers and shareholders.

This corporate culture is known as the Dofasco Way, and it has been the driving force in
employee relations since the company was founded in 1912.

ArcelorMittal Dofasco was the first Canadian company to introduce profit sharing to
motivate the workforce and have employees benefit from the company's success. In
addition, ArcelorMittal Dofasco also operates a 100-acre park in Stoney Creek, Ontario,
with facilities for staff recreation, education and meetings.

Employee incentives and investments in people are giving ArcelorMittal Dofasco a

significant edge in a more aggressive and hotly competitive steel industry. Our focus is
firmly fixed on innovation and measurable performance.

Attrition is very low, and productivity has increased 50 per cent since 1990, which is
about twice the rate of the Canadian manufacturing sector. Our employees feel they have
a stake in the company and something to gain in preserving and expanding the Dofasco
Way.

Arcelor Increase Offer to Acquire Dofasco

Arcelor S.A. announces its intention to make an enhanced all cash offer to acquire all of
the outstanding common shares of Canadian steelmaker Dofasco Inc. (TSX: DFS) at
C$63.00 per share.

Arcelor expects that the Board of Directors of Dofasco will recognize that this offer is
superior to ThyssenKrupp's offer. Arcelor is open to approaches by Dofasco's Board of
Directors and / or another party to finalize the acquisition at this attractive price level for
the Dofasco Shareholders.

Guy Dollé, Chief Executive Officer of Arcelor, reiterated that "Expansion into North
America is a key strategic objective for Arcelor. We believe that Arcelor is an excellent
partner for Dofasco. As a partner of the Arcelor group, Dofasco will become a stronger,
more competitive steel producer on the North American steel market."
Mr. Dollé also underlined that Dofasco's highly regarded corporate values with respect to
its relations with employees, and its legacy of active community engagement, are
principles that Arcelor shares and will continue to support.

Full details of the offer will be included in the formal take-over bid and circular
documents which Arcelor expects to mail to Dofasco shareholders in the coming days.

The offer will be open for acceptance for 35 days and will contain certain conditions that
are customary to transactions of this nature, including the valid tender, and non-
withdrawal, of at least 66-2/3% of Dofasco's common shares, waiver or other appropriate
measures dealing with Dofasco's shareholder rights plan, receipt of required regulatory
consents and approvals, the absence of litigation, no material adverse change at Dofasco
and certain other conditions.

http://www.azom.com/news.asp?newsID=4623nm

Arcelor takes control of Dofasco

Last Updated: Tuesday, February 21, 2006 | 2:50 PM ET

CBC News
Luxembourg's Arcelor announced on Tuesday it has acquired 88.4 per cent of the shares of
Canada's Dofasco, meaning it has won control of the Hamilton-based steelmaker.

"Today, Dofasco becomes the centre of Arcelor's growth strategy in North America and
cornerstone of our continued worldwide leadership in the market for automotive steel,"
said Guy Doll , Arcelor's chief executive officer.

Arcelor is extending its takeover offer until March 7. At that time, it will exercise its right
to buy all remaining outstanding shares of Dofasco at the offer price of $71 each.
Dofasco shares will then be delisted from the TSX.

What is not clear, however, is whether Dofasco will remain Arcelor's property. The
uncertainty comes from the Dutch steel giant Mittal Steel, which has launched a $22.8-
billion US takeover attempt of Arcelor. Arcelor's management is fighting the Mittal bid.

• FROM Jan. 27, 2006: ThyssenKrupp may get Dofasco in surprise steel-sector takeover

If Mittal wins, it plans to spin off Dofasco to Germany's ThyssenKrupp, which earlier
dropped out of the bidding for Dofasco.

http://www.cbc.ca/money/story/2006/02/21/arcelor-060221.html

Arcelor acquires 88.38% of Dofasco's Common Shares

Wednesday, 22 Feb, 2006
Arcelor SA and Dofasco Inc announced that 69,563,143 common shares of Dofasco
including shares deposited by guaranteed delivery, representing 88.38% of the Dofasco
common shares outstanding on a fully-diluted basis, were deposited to Arcelor's offer to
acquire all of the outstanding common shares of Dofasco for CAD$71.00 in cash per
Dofasco common share by the expiry time of the offer on February 20, 2006. All of the
conditions of the offer now being satisfied, Arcelor's wholly-owned subsidiary, 4313267
Canada Inc, has taken up all of the Dofasco common shares that were deposited to the
offer. Payment for such Dofasco common shares is expected to be made on or prior to
February 23, 2006. In order to provide Dofasco shareholders who have not yet accepted
the offer with more time to do so, Arcelor has extended the expiry time of the offer to 8
PM Toronto time on March 7, 2006. "Today, Dofasco becomes the centre of Arcelor's
growth strategy in North America, and cornerstone of our continued
Worldwide leadership in the market for automotive steel" said Mr Guy DollCEO of
Arcelor. "I am delighted to welcome the employees of Dofasco into the Arcelor family
and to reinforce our commitment to the community of Hamilton." "The coming together
of our two companies is a partnership that will create significant, long-term opportunities
for growth in an increasingly competitive global industry," said Mr Don Pether, President
and CEO Dofasco. "We will be positioned to offer our customers an enhanced range of
solutions in steel, and thereby to create significant value", he continued.

www.steelguru.com

Arcelor acquires Dofasco for $5.6 billion

Client
Dofasco Inc.

On March 8, 2006, Arcelor SA of Luxembourg announced that it had acquired over 98 per cent of
the outstanding common shares of Dofasco pursuant to its $5.6 billion takeover bid launched on
December 31, 2005. Arcelor further announced that it would, as soon as permitted, acquire the
remaining Dofasco common shares by means of a statutory compulsory acquisition procedure under
the applicable provisions of the Canada Business Corporations Act at the same price as the offer.

The successful acquisition by Arcelor is the culmination of months of bidding by Arcelor and
ThyssenKrupp AG of Germany that began when Arcelor announced that it would be making an
unsolicited bid at a price of $56 per share on November 23, 2005. Dofasco turned to ThyssenKrupp
as its white knight and a bidding war ensued between Arcelor and ThyssenKrupp that saw both
companies make several offers for Dofasco. The international bidding war ultimately came to an end
on January 24, 2006, when ThyssenKrupp announced that it would not increase its highest price of
$68 per share to match the $71 price offered by Arcelor. However, before Arcelor was able to
complete the acquisition, Mittal Steel NV announced its intention to make an unsolicited offer to
acquire all of the shares of Arcelor in exchange for Mittal shares and cash and Mittal further
announced that, if it was successful in acquiring Arcelor, it intended to sell Dofasco to ThyssenKrupp
at a price of $68 per share. It is not known at this time whether Mittal's offer will be successful.
Arcelor and Dofasco, following the unanimous recommendation of Dofasco's board of directors,
entered into an agreement providing for Dofasco's support of Arcelor's offer. Dofasco is expected to
be Arcelor's platform for growth in North America.
Dofasco was represented by Joan Weppler, vice-president corporate administration and general
counsel, and Grant Currier, senior counsel, with the assistance of Fasken Martineau with a team led
by Jon Levin and Wally Palmer and consisting of Sean Stevens, Daniel Batista and Dan Fabiano
(M&A), Roxanne McCormick (banking), Kathleen Hanly (tax) and Anthony Baldanza and Huy Do
(competition and Investment Canada).

http://www.fasken.com/experience/detail.aspx?experience=1352

MERGER OF ARCELOR MITTAL WITH INTL STEEL

The Inland Steel Company was a U.S. steel company active in 1893-1998. Its history as
an independent firm thus spanned much of the 20th century. It was headquartered
in Chicago, Illinois at the landmark Inland Steel Building.

Inland Steel was an integrated steel company that reduced iron ore to steel. Its sole steel
mill was located in East Chicago, Indiana, on the Indiana Harbor and Ship Canal and a
large landfill protruding out into Lake Michigan. The steel mill's shoreline location
enabled it to take in steelmaking commodities, such as iron ore, coal, and limestone,
by lake freighter. Throughout much of its life, Inland Steel operated its own fleet of bulk
carrier vessels.

Inland Steel was founded in 1893 through the purchase, by financier Philip Block, of a
small failed Chicago Heights, Illinois steel mill, Chicago Steel Works. The Block family
led Inland Steel's recovery and, in 1901, Inland Steel pledged to raise more than $1.0
million to build an open-hearth mill in East Chicago. This expansion caused the firm to
grow more than tenfold in size, from 250 workers in 1897 to 2,600 in 1910.

Inland Steel continued to face heavy competition from U.S. Steel, the Pittsburgh-based
giant that at that time possessed a dominant share of the U.S. steel market. World wars
increased steel demand and pushed Inland Steel forward. In 1917 (World War I), Inland
Steel's production broke the 1.0-million ton (0.9m tonne) mark for the first time. By
World War II the Indiana steelmaker was producing 3.5 million tons (3.1m tonnes) per
year.
Starting in the 1950s, Inland Steel specialized in cold-rolled sheet and strip steel
for motor vehicles. Employment at the Indiana Harbor mill rose toward its peak of
25,000 in 1969.

The decline in the U.S. steel industry, starting in 1970, affected Inland Steel. Foreign
steel companies were increasing their presence in the world steel market. During the late
1970s Inland Steel formed several joint ventures with Nippon Steel to create I/N Tek and
I/N Kote, but these moves could not save the firm's independence. A predecessor firm of
the current ArcelorMittal acquired Inland Steel in 1998.

NKK Corporation of Japan

More than eight decades ago, NKK was established as Japan's first privately
owned steelmaker. That initiative was the beginning of a continuing record of
diversification and innovation. Since then, we have brought our efforts and
expertise to developing technologies, ways of living and our corporate
community. Today this momentum is leading us into uncharted fields and
new relationships.

Company History

NKK Corporation is one of the world's largest steelmakers and Japan's second largest.
In addition to steelmaking, the company is active in engineering, urban development, and
electronics. NKK's engineering sector is involved in designing and building such projects
as pipelines, power plants, water supply and sewage treatment systems, bridges, ships,
and offshore structures. The urban development unit designs and constructs
condominiums, office buildings, amusement parks, golf courses, and other facilities. The
electronics group develops automation design systems, advanced computer software, and
integrated circuits, as well as computers.

Steel Division
 NKK Group is the seventh largest steel manufacturer in the world, with an
annual raw steel production capacity of approximately 20 million tons. In
Japan, NKK operates two integrated steel works, the Fukuyama Works and
Keihin Works. The Fukuyama Works is one of the largest and foremost
integrated steel works in the world with an annual raw steel production
capacity of approximately 10 million tons. It is also ranked top internationally
in terms of overall competitiveness, including cost and quality. The Keihin
Works, situated near Tokyo, produces three million tons of raw steel per
annum and is the most modern integrated facility in Japan, featuring
environment-friendly, state-of-the-art technology. NKK BARS & SHAPES, a
wholly owned subsidiary, has an annual raw steel production capacity of
approximately 1.5 million tons. In the United States, NKK maintains a 69.7%
shareholding in NSC, headquartered in Mishawaka, Indiana. The annual raw
steel production capacity of NSC is approximately 5.5 million tons. NSC is
dedicated to manufacturing high-quality flat-rolled steel sheets for automotive,
construction, container and other industries. NKK Group also has two steel
sheet joint ventures in Thailand.

Sales revenue of the Steel Division for fiscal 2000 was ¥1,235.9 billion,
down 7.8% from the previous year, reflecting the decline in domestic steel
demand. However, global demand for steel rose, despite faltering prices. NKK
continued to expand sales worldwide and successfully reduce its costs. As a
consequence, operating income jumped to ¥56.7 billion, from ¥9.1 billion in
the previous year.

NKK and Kawasaki merger

NKK and Kawasaki Steel officially signed an agreement for consolidation to form the
JFE Group on 1 July 2002. As a result of the consolidation, the JFE Group was formed.
It planned to achieve synergy effects totalling 80bn [yen] by the end of fiscal 2006. The
group expected to reap [yen] 20bn in that fiscal year.
NKK was regarded as the weaker of the two companies but Kawasaki Steel
Corp's president Kanji Emoto pointed out that NKK was restructuring its
operations in an attempt to improve its National Steel unit. Both companies
said they will set up new bases in Europe and the USA.

Explaining their new name, the companies said the letter "J" stands for Japan, "F" is for
"Fe," the chemical symbol of iron, and "E" stands for engineering. The new group's core
business will be steel production and engineering. The companies have ideals of
becoming a "future-oriented leading business group," saying the JFE acronym also
stands for "Japan Future Enterprise."
The new group JFE planned to onsolidate steel facilities, including blast furnaces, to
optimise production. JFE Steel, to be established in April 2003, will inherit 11 blast
furnaces. JFE's main business is steel production, although it also engages in
engineering, construction, logistics, and chemicals. The company also operates
several overseas subsidiaries, including California Steel in the United States, Fujian
Sino-Japan Metal in China, and Minas da Serra Geral in Brazil.

The new group JFE planned to onsolidate steel facilities, including blast
furnaces, to optimise production. JFE Steel, to be established in April 2003,
will inherit 11 blast furnaces. JFE's main business is steel production,
although it also engages in engineering, construction, logistics, and
chemicals. The company also operates several overseas subsidiaries,
including California Steel in the United States, Fujian Sino-Japan Metal in
China, and Minas da Serra Geral in Brazil.

NKK CORP

Statistics:
Public Company
Incorporated: 1912 as Nippon Kokan K.K.
Employees: 15,613
Sales: ¥1.11 trillion (US$8.42 billion) (1998)
Stock Exchanges: Tokyo Osaka Nagoya
Ticker Symbol: NKKCY

Company Perspectives:
More than eight decades ago, NKK was established as Japan's first privately
owned steelmaker. That initiative was the beginning of a continuing record of
diversification and innovation. Since then, we have brought our efforts and
expertise to developing technologies, ways of living and our corporate
community. Today this momentum is leading us into uncharted fields and
new relationships.

Products

NKK Corporation. The Group's principal activity is manufacturing steel related

products. The Groups is also involved in developing a variety of technologies
for production of its primary products such as ships, bridges, pipelines, and
incinerators, while at the same time providing consulting services for their
installation. Operations are carried out through the following divisions: steel
making (sheets, plates, pipes, tubes, bars, shapes); engineering (energy
industries, environmental industries, plant engineering, steel structures,
machinery systems, shipbuilding, offshore structures, concept engineering);
others (information technology, real estate, urban development, LSI). Steel
making accounted for 70% of fiscal 2002 revenues; engineering 26% and
other 4%.

Company History:

NKK Corporation is one of the world's largest steelmakers and Japan's second
largest. In addition to steelmaking, the company is active in engineering,
urban development, and electronics. NKK's engineering sector is involved in
designing and building such projects as pipelines, power plants, water supply
and sewage treatment systems, bridges, ships, and offshore structures. The
urban development unit designs and constructs condominiums, office
buildings, amusement parks, golf courses, and other facilities. The
electronics group develops automation design systems, advanced computer
software, and integrated circuits, as well as computers.

Nippon Kokan K.K. Established in 1912

Conscious of the growing market for pipe, Ganjiro Shiraishi, an independent
businessman, began in 1911 to gather the financial support and Western-
developed technical expertise to produce what would become an
innovation--Japan's first seamless steel pipe. After more than a year of initial
research and organizational development, Nippon Kokan K.K. began
operations in mid-1912 with ¥2 million in capital. During its first few years,
the company was occupied with the complex process of setting up an open-
hearth furnace for refining steel scrap and pig iron. The first steel was tapped
from that furnace in 1914.

Manchuria, a disputed territory, became a target, and was annexed to Japan

in 1931. Steel products were again in increased demand as plans for further
military action called for the buildup of new installations and vessels. To
smelt iron directly from ore, Nippon Kokan built a 400-ton blast furnace,
completing it in 1937. A 600-ton blast furnace was completed in 1938. Even
the fact that Japan was poor in iron ore operated to Nippon Kokan's
advantage. Because there was no need to situate its plants near a
mountainous source of ore, the plants were located close to Tokyo's
waterfront, convenient both for receiving ore from other countries and for
efficient shipping of steel products to customers.

Entered Shipbuilding in 1940

Through a merger, Nippon Kokan went into the shipbuilding business in

1940, acquiring the Tsurumi Steelmaking and Shipbuilding Company. As
Japan went to war with the United States the following year, plans for a
5,000-ton capacity shipbuilding berth at the company's Shimizu shipyard
went forward; the project was completed in 1943. Although business was at
a standstill for many months as the Supreme Council of the Allied Forces
(SCAP) took over governing the country and preparing it for future self-
government, Nippon Kokan survived. In April 1946 a new president, Masato
Watanabe, began the task of rebuilding the company's facilities and
customer base. The constitutional reforms and financial support that SCAP
introduced created a new climate for business recovery and growth that
helped Nippon Kokan and other businesses progress rapidly.

Postwar International Expansion

International expansion was already underway. The company acquired an

interest in the Ujiminas Steel Works in Brazil in 1957 and, the following year,
opened offices in New York. In 1959 Düsseldorf, Germany, became Nippon
Kokan's European headquarters. The company was on an ascendant growth
curve that was to extend well into the next quarter-century. Offices were
opened in Singapore, Los Angeles, and London between 1961 and 1963.

Purchased Interest in National Steel in 1984

Instead, in 1984, Nippon Kokan K.K. purchased a 50 percent interest in

National Steel Corporation, the sixth largest steel works in the United States.
This purchase provided the opportunity to exert a positive influence on
product quality. The immediate result of the purchase was to double National
Steel's annual capital investment to $200 million and to infuse new and
advanced technology into the U.S. firm. By 1990 Nippon Kokan K.K. owned
70 percent of National Steel. Although productivity increased, National
Steel's profits continued to decline. Nippon Kokan entered into a joint
venture with another U.S. company, Martin Marietta Corporation, in 1984,
forming the International Light Metals Corporation.

1990s Difficulties

Throughout the 1990s NKK was beset by numerous difficulties. Following the
collapse of the Japanese financial bubble of the 1980s the Japanese economy
entered into a prolonged state of stagnation, at the same time that a strong
yen made Japanese imports less desirable. Simultaneously, Japanese
steelmakers, like their counterparts in North America, were facing increasing
competition from upstart operators of minimills.

To make matters worse, NKK's entrance into the U.S. steel market through
National Steel turned nearly disastrous. NKK had poured $2 billion into
National Steel by the mid-1990s to modernize the steelmakers outdated
facilities, but management difficulties, poor relations with labor, a bloated
workforce, and a product line consisting mainly of cheaper steels all
contributed to a consistently unprofitable operation. National Steel's losses
led in turn to losses at NKK, including net losses of ¥26.79 billion in 1994 and
¥35.37 billion in 1995.
KAWASAKI

Statistics:
Public Company
Incorporated: 1950
Employees: 18,128
Sales: ¥1.11 trillion (US$8.17 billion)
Stock Index: Tokyo Osaka Nagoya Sapporo Niigata Kyoto Hiroshima
Fukuoka Frankfurt

Company History:
On August 7, 1950, Kawasaki Steel Corporation began to function, on a much
smaller scale and without the benefit of the advanced technology that had
created a reputation for quality in production. Starting the business without a
single blast furnace, Yataro Nishiyama, the company's first president, had to
negotiate with competing companies to obtain pig iron. The pig iron was
melted in Kawasaki's open hearth furnaces and rolled into ingot steel on
outmoded equipment, but the new enterprise managed to remain
competitive despite these early difficulties. Within a year, Kawasaki Steel
was able to start constructing a new blast furnace on a landfill at its Chiba
works. The blast furnace, put into operation in June 1953, brought an
increase in the momentum of productivity that continued throughout the
ensuing decades.

To keep its competitive edge, based on early use of new technology,

Kawasaki Steel devoted considerable effort to modernizing its plants and
increasing its production capacity. In 1966 Ichiro Fujimoto succeeded
Nishiyama as president. In April 1967 a new blast furnace at the company's
Mizushima works created an upsurge in the company's productivity.
Expansion continued at Mizushima works through April 1973, greatly
increasing the capacity of the Mizushima works.

The prospect of worldwide shortages of energy and raw materials in the

early 1970s motivated Kawasaki Steel to look for new resources overseas. In
March 1974 the company entered into a joint venture with Finsider, of Italy,
and Siderbrás, of Brazil, to form a Brazilian slab production company,
Companhia Siderurgica de Tubarao. As new Kawasaki Steel president Eiro
Iwamura took office in 1977, the company was in the process of acquiring
Philippine Sinter Corporation on the island of Mindanao.

Five years later, Yasuhiro Yagi was installed as Kawasaki Steel's president; in
1990 he became chairman of the board, and Shinobu Tosaki was named
president. Modernization of the company's two main plants had become an
ongoing process in the 1980s, as the company's growth reflected the
efficacy of using advanced technology. Three years after the Chiba works
underwent a complete renovation, that plant's production of raw steel
passed the cumulative ten-million-ton mark.

Kawasaki Steel continued to acquire subsidiaries and enter into joint

ventures around the globe in the early 1980s, acquiring, for example, a
sizable interest in California Steel Industries, which began to absorb some of
the slab production of Companhia Siderurgica de Tubarao. This time the
motivation for acquiring new interests was to gain a share of some of the
better markets for steel products.

In the mid-1980s, a worldwide slump in the steel markets coupled with rising
costs of labor and production caused Kawasaki Steel to enter into a major
retrenchment program, cutting back on production, on operating facilities,
and on personnel during a two-year period. In fiscal year 1987 Kawasaki
Steel lost money. In fiscal year 1988, the company's books were again
showing a profit.

At the same time Kawasaki introduced the cutbacks in steel production and
plant operation, the company entered into an ambitious diversification plan.
An agreement with Armco Inc. culminated in joint operation and ownership of
a carbon steel company. In the late 1980s and early 1990s, Kawasaki Steel
rapidly entered a variety of other businesses, manufacturing permanent
magnets, semiconductors, silicon wafers, and fiber-reinforced plastic sheets.
After forming Clef, a biotechnology company, plans were announced to enter
the cable television business.

By 1990 the company's research-and-development facilities had grown in

size and complexity to accommodate research in a wide number of fields.
New products introduced by Kawasaki Steel included a laser-beam
fingerprint detector and a catalytic converter made of stainless steel foil. The
possibilities of manufacturing large-scale integrated circuits, magnetic
materials, and injection-molded powder-metallurgy parts were being
explored, and the research center staff worked closely with the engineering
and marketing staff.

As Shinobu Tosaki assumed the company's presidency in mid-1990,

Kawasaki Steel's steel operations were generating unprecedented cash flow,
its engineering business was flourishing, the new businesses were reportedly
getting "on their feet," and capital spending was again on the rise, indicating
optimism about the company's plans for future development.
Merger between NKK Corp and Kawasaki
steel
The NKK-Kawasaki deal is the first merger between major steelmakers in Japan since the
creation in 1970 of Nippon Steel, through the merger of Yawata and Fuji.

JAPAN'S second and third largest steel manufacturers, NKK and Kawasaki Steel, announced on
13 April 2001 that they will merge. They planned to combine their operations under a holding
company through a share swap, with full integration expected within two years. Industry sources
in Japan estimated that the merged company would have a crude steel capacity of about 33m
tones, dwarfing the output of the country's No 1, Nippon Steel, which makes about 28m tones
per year.

At that time Kawasaki president Kanji Emoto said in Tokyo that the two companies faced
difficulties in coming together due to the stock prices and the financial details of the two
companies. The merger was done under an equal partnership. However, this deal had knocked
3.7pc off Kawasaki Steel's share price, while boosting NKK's by over 12pc.

JFE Holdings Inc., which owns the plant JFE -- short for the cheerful "Japan Future Enterprise"
-- is the product of a 1 July 2002 merger of the struggling Kawasaki Steel and NKK steel
companies. The amount involved in this deal was $14.2 billion. The combination was the world's
No. 4 steel producer, and Japan's No. 2. JFE steel had its chairman Masayuki Hanmyo, formerly
Executive Vice President at NKK and as its President Fumino Sudo, formerly President and
CEO of Kawasaki steel corp.

The JFE Group planed to achieve synergy effects totaling 80bn [yen] by the end of fiscal 2006.
The group expected to reap [yen] 20bn in the 2002 fiscal year ending March 2003, by sharing
competitive technology through expanded technological exchange, promoting OEM and cutting
procurement costs. The efficiency of R&D operations will be enhanced by eliminating redundant
projects and focusing increasingly on the development of new products. The JFE Group planed
to consolidate steel facilities, including blast furnaces, to optimise production. JFE Steel,
established in April 2003, has 11 blast furnaces, but planed to close two--No5 at Chiba Works
and No l at Mizushima Works.

JFE Steel had rescheduled relining programs to equalize the level of

investment. Relining of the Keihin No2 blast furnace was postponed by one
year and completed in the second half of fiscal 2005. The Mizushima No2
blast furnace was relined in the second half of fiscal 2004 as originally
scheduled, but modernisation of hot stoves was postponed.

Consolidation of production lines other than blast furnaces was carried out,
focusing on effective utilisation of common facilities in consideration of their
geographical characteristics and unique strengths.

Stainless steel slab production, steelmaking and casting operations at

Fukuyama Works was integrated with existing operations at Chiba Works.
The stainless steel refining furnace at Fukuyama Works was used as
phosphorus removal equipment. The possibility of closing the batch
annealing furnace and continuous annealing line at Keihin Works was
studied. Consolidation of rolling mill facilities was also considered. Those
targeted include electrolytic galvanizing lines, continuous galvanizing lines,
electric tinning lines, section mills and electric resistance welded pipe mills.

By integrating management, NKK and Kawasaki steel corp. hope to save about ¥50 billion
through the streamlining of R&D and capital investment. The result was an estimated annual
production of crude steel that will reach 33 million tons.

JFE's strength was the high-grade steel used to make cars, appliancesJFE had emerged as a
strong rival. For the year ending in March, JFE expected to earn $1.4 billion on sales of $27.4
billion, up from profits of $1.0 billion and sales of $23.9 billion in 2004. JFE's operating margins
that year were expected to hit 15.8%, making it Japan's most profitable steelmaker, although JFE
was still laged behind Korea's Posco. JFE's return on assets, meanwhile, was expected to reach
12% in 2005, up from 3.6% in 2003. Debt was projected to fall to $14.4 billion in 2005, down
from $20 billion in 2003.

Even as profits have soared, JFE had kept an eye on costs. One of the first decisions by the
combined company was to close two of its 11 blast furnaces in Japan. JFE had also shuttered a
dozen inefficient lines for rolling and shaping steel -- about 15% of the company's capacity. In
addition, it had cut the workforce by 9%, to about 47,000, and expected to trim that to 44,600 by
2006. All told, JFE had cut costs by about $1 billion since 2003.

JFE has also used the best brains in each of the merged companies to revamp procedures and
processes. The new leadership team transferred NKK managers to Kawasaki production lines
and vice-versa in an effort to break down fiefdoms. While many groused about the reshuffling,
the result was a redistribution of know-how that spurred innovation. For example, NKK adopted
a time-saving Kawasaki technique that uses ramps and trucks to get raw materials to the blast
furnace instead of cranes. And Kawasaki-run plants now use an NKK-pioneered process to
control the temperature of hot-rolled steel on its production lines.

Merger of Krupp AG with Thyssen

Company History Thyssen Krupp

AG
Thyssen Krupp AG was created in March 1999 from the merger of two of Germany's oldest industrial
giants, Thyssen AG and Fried. Krupp AG Hoesch-Krupp. The fifth largest company in Germany, Thyssen
Krupp has five main divisions. Thyssen Krupp Steel is the fifth largest steelmaker in the world and
specializes in carbon steel and stainless steel. Thyssen Krupp Automotive is one of the world's top ten
auto suppliers, producing parts, components, assemblies, and systems for chassis, body, powertrain,
and steering applications. Thyssen Krupp Industries produces elevators, escalators, and conveyors;
metal-cutting machine tools; plastics machinery; and industrial bearings, rings, and other components.
This division is also involved in shipbuilding and civil engineering. Thyssen Krupp Engineering plans and
constructs chemical, cement, and other plants, and creates surface mining systems. Thyssen Krupp
Materials & Services is involved in trading, industrial and building services, and project management.

Thyssen's Early History

Thyssen traces its origins to a steel plant in Bruckhausen near Hamborn on the Rhine, which started
operations in December 1891 and later formed the core of the Thyssen empire. The plant was built by
August Thyssen, a 50-year-old entrepreneur who had already built up a steel and engineering business
called Thyssen & Co. August had worked in his father's banking business in Eschweiler and later as a
manager-partner of a steel mill, called Thyssen, Fossoul & Co. In 1871, the year of Germany's first
unification, he set up his own business at Mulheim in the Ruhr area with 35,000 talers and a paternal
grant of the same sum. August Thyssen's business expansion in the 1880s included the purchase of large
coal mines. He gradually bought into the Gewerkschaft Deutscher Kaiser coal pits and took the mining
company over entirely in 1891. Thyssen & Co.'s Mulheim factories soon became unsuitable for August's
expansion plans as the site was too small and lay too far away from a river, which he needed for
transport. In 1889 he decided to build the steel plant at Bruckhausen, installing six furnaces using the
modern Siemens-Martin technique, and a rolling mill with five trains for the first step. August also
wanted to control his own crude steel supplies, building a plant in 1895 in Bruckhausen, which started
operations two years later.

August's companies expanded quickly in the years leading up to World War I, securing their own coal
and iron ore supplies. His drive for self-sufficiency made him buy into raw materials suppliers in
France, North Africa, and Russia. By 1904, August's rolled steel production had hit 700,000 tons a year,
putting him ahead of other producers in Germany. The demands made by Germany's military
authorities during World War I buoyed Thyssen's business in the same way as other German industries,
but Germany's defeat had catastrophic consequences for the company. Its foreign property was
confiscated, its plants in the Ruhr Valley were put temporarily under French control, and earnings were
battered by the postwar hyperinflation.

August's shrunken business empire only became profitable again in late 1924. The octogenarian August
concentrated on mechanizing production to cut costs, and initially resisted overtures from other
German steel producers to form a cartel. However, Thyssen gave up its independence soon after
August's death in 1926, joining four other coal and steel enterprises to form Vereinigten Stahlwerke AG
(Vst). Thyssen made up more than a quarter of Vst's paid-up capital of 800 million reichsmarks and
Fritz Thyssen became chairman of the supervisory board. Vst was decentralized in 1934; five steel mills
in the western part of the Ruhr district were grouped into the August Thyssen-Hütte AG based in
Duisburg.

Fritz Thyssen, the elder son of August, is remembered more for his association with Adolf Hitler than
for his business skills. Frustrated by his father's long tenure at the head of the company, Fritz
channeled his energies into right-wing politics aiming to subvert the Weimar Republic. He became an
early supporter of the Nazi party. Fritz later fell out with the Nazis and recanted in a ghostwritten
autobiography titled I Paid Hitler. He fled Germany in 1939, was captured in Vichy, France, and
incarcerated from 1941 to November 1943 in a mental asylum and then until the end of the war in
concentration camps. After World War II, Fritz's break with the Nazis was largely accepted by a
denazification court, which fined him 15 percent of his German properties. At the end of 1948 he
immigrated to Latin America.

Vst and Thyssen's main works, now ATH AG, fared just as badly under the Nazis. The Four Year plan of
1936, devised by Hitler to prepare Germany for war, restricted raw material supplies and made cost-
effective production almost impossible. During the war years, ATH, like other German companies,
became a supplier to war production, although in 1942 Nazi hard-liners accused the company of
defeatism. In autumn 1944, Allied bombing raids destroyed many of ATH's factories, with production in
its huge plants ceasing altogether.

Emerged Postwar As August Thyssen-Hütte

Worse was to follow. The victorious Allies allowed limited repairs at ATH's factories, and the first steel
mills at Thyssen-Hütte, the main works of ATH, began operating again in October 1945 but only
temporarily. In April 1946 the Allies agreed to stop reconstruction while they decided what to do with
German industry, which they blamed for arming Hitler. In February 1948 the Allies decided to
dismantle Thyssen-Hütte as part of their war reparations from Germany. Factories were detonated or
stripped of machinery. The destruction of the Thyssen-Hütte and other works of Vst was only halted in
November 1949 with the Petersberg Treaty, an agreement signed between the Allies and the new
government of the Federal Republic of Germany. At the same time the Allies broke up the Vst group
into 16 successor companies. They also separated the steel companies from their mining firms. All that
remained of August Thyssen-Hütte AG was the core business of the former Thyssen-Hütte at Hamborn.
Nevertheless it restarted its first blast furnace in 1951. Business improved once the Allies lifted steel
production limits one year later.

In May 1953 August Thyssen-Hütte AG was relaunched as a public company with the successors of Fritz
Thyssen as minority shareholders. Eventually, a consortium company belonging to the Fritz Thyssen
family and the Commerzbank AG and Allianz AG insurance group was created and held a stake in
Thyssen of more than 25 percent.

Thyssen's postwar history was dominated by two management board chairmen, Hans-Günther Sohl, who
ran the company from 1953 to 1973, and his successor, Dieter Spethmann, who retired in 1991. Sohl
rebuilt ATH as Germany's biggest steelmaker and Spethmann presided over its often difficult
diversification into new product areas.

ATH flourished in the 1950s on booming steel demand, building new facilities to make flat rolled steel.
The company invested some DM 700 million up to 1958 and spent DM 800 million alone on a new
Beeckerwerth plant. Thyssen also expanded by buying up companies, taking over four major producers
by 1968: Niederrheinische Hütte AG, Deutsche Edelstahlwerke AG, Phoenix-Rheinrohr AG, and
Hüttenwerk Oberhausen AG. It also expanded into trading and services by buying into Handelsunion AG
from 1960 onward. The future core of the Thyssen Handelsunion AG subsidiary, Handelsunion traded in
steel, scrap metal and raw materials, and also offered transport services. Thyssen also forged alliances
with other large German steel producers to make production more cost-effective, signing an agreement
with Mannesmann in 1970 on steel pipe and rolled steel manufacturing.

Expanding steel output was still the ATH strategy at the beginning of the 1970s, when cheaper imports
from newly emerging steel producing companies began to undercut European producers. Thyssen's steel
production peaked at 17 million tons in 1974, the same year that the first major steel crisis hit world
manufacturers. Like other German producers, Thyssen suffered from 1969 and 1973 revaluations of the
deutsche mark, high wage costs, and the imposition of environmental controls. The oil price rise of
1973 delivered another blow to the industry as costs soared and demand shrank.

Thyssen Diversified in the 1970s

and 1980s
Thyssen decided to scrap all plans to expand steelmaking capacity and to withdraw from sectors where
competitors were undercutting the company's prices. Instead, Thyssen invested in streamlining
production and in diversifying away from steel. In 1973--74, Thyssen took over Rheinstahl AG, the
group's high technology engineering group which in 1976 was renamed Thyssen Industrie AG. In 1978
Thyssen bought a U.S. car components maker, The Budd Company.
However, these acquisitions initially caused problems. Rheinstahl had a number of steel mills, which
increased Thyssen's capacity to 21 million tons a year. The company was forced to close nearly 30
plants in the Thyssen group between 1974 and 1980. The number working in Thyssen's West German
steel plants decreased to fewer than 75,000 in 1979 from 85,000 five years earlier. Budd made money
for Thyssen in the first two years after the takeover. The second oil crisis in 1979 pitched the U.S.
economy into recession and caused heavy losses at Budd; the company only saw a turnaround in 1982.
One of the biggest loss makers was Budd's railway equipment division; it had signed four large contracts
in 1981 at fixed prices that never covered production costs. The division's workforce was cut to 700
from 2,500. Budd then concentrated on its core auto-components market, cutting its workforce from
21,500 in 1978 to fewer than 12,000 in 1986.

Thyssen's diversifications were continually dogged by the decline of the steel industry. Spethmann was
determined to restructure Thyssen using the company's own financial resources. He opposed
acceptance of subsidies such as those propping up rival state-owned steelmakers in Belgium, the
United Kingdom, and France, but the near-collapse of steel prices forced Thyssen to accept European
Community production quotas and subsidies in 1980. The steel crisis continued, however, forcing the
creation of Thyssen Stahl AG in 1982 as an independent steel group, in a bid to find partners to help
reduce costs. Spethmann made the first of many overtures to archrival Fried. Krupp GmbH for merging
production but was rebuffed. Thyssen therefore imposed a tough program of cuts, with a reduction to
the 1991 level of 11 million tons capacity from 16 million tons. Losses at Budd and at Thyssen Stahl
forced the group to suspend dividend payments for two years in 1982. An improvement in the world
economy prompted Thyssen to restart dividend payments at five marks a share, though losses at
Thyssen Stahl continued until 1987.

In the 1980s, Thyssen linked its name to high-technology projects in the transport sector. It lead-
managed a consortium developing the Transrapid train, capable of speeds of up to 500 kilometers an
hour. The Transrapid was sold as a revolutionary form of transport running on a magnetic field rather
than on wheels. The train had no engine on board and relied on electromagnetic motors in the track.
Thyssen wanted to lay a Transrapid track from the northern port city of Hamburg to Munich in the
south, but received government backing only for a smaller pilot track in North Rhine Westfalia state.
The government was not entirely convinced that all of Transrapid's technical problems had been
solved, and was worried about funding a white elephant project. A bitter row broke out before the
government gave approval. Thyssen accused Bonn officials of trying to sabotage the project, which the
company wanted to sell abroad.

Thyssen's image suffered in the 1980s when a book was published accusing Thyssen Stahl of
malpractices in its treatment of Turkish guest workers. Thyssen successfully contested the book in
court, however, and author Günter Wallraff had to delete passages from his bestseller, titled At the
Very Bottom.

Declining Fortunes for Thyssen in the Early 1990s Led to Restructuring

Taking over Spethmann's chief executive post in 1991 was Heinz Kriwet, who presided over some of the
company's darkest days. In the aftermath of the reunification of Germany, Thyssen reacted cautiously,
shying away from buying into East Germany's decrepit steel industry. Instead, it concentrated on
setting up 27 smaller ventures in the engineering and services sector, involving investments of some DM
500 million. It also signed another 40 cooperation deals with state-owned companies in the former
communist country. The early years of the 1990s also saw Thyssen diversify again, through an entrance
into the telecommunications industry, including the formation of an alliance with U.S. telecom firm
BellSouth, with the partners hoping to grab a piece of an industry that was in the process of being
deregulated in Germany.
Declining steel demand in the early 1990s had a major impact on Thyssen, leading to several years of
declining profits before the company posted a net loss of DM 994 million for the 1992--93 fiscal year.
During that year the company shed more than 7,000 jobs from its workforce as part of a rationalization
program. Thyssen also began aggressively pursuing alliances with other companies in a near desperate
attempt to cut costs and reduce losses. The most important of these was a linkup with Fried. Krupp AG
Hoesch-Krupp, the new name for Fried. Krupp GmbH after it acquired ailing Rhineland steelmaker
Hoesch AG through a hostile takeover. In 1995 Thyssen and Krupp merged their stainless steel
operations in a joint venture called Krupp-Thyssen Nirosta, which was 60 percent owned by Krupp and
40 percent owned by Thyssen. Nirosta instantly became the largest stainless-steelmaker in the world,
with annual capacity of 1.2 million metric tons and annual revenues of DM 4.5 billion (US$3.2 billion).
In September 1995, meanwhile, two great-grandsons of Thyssen's founder, August Thyssen, sold their
remaining stakes in the company, thereby severing the final ties between the Thyssen family and the
company.

In March 1996 Kriwet took over as chairman of Thyssen, while Dieter Vogel, who had headed up the
group's trading and services division, stepped into the chief executive slot. In August 1996 Vogel was
arrested--along with nine other Thyssen executives--as part of an investigation into whether Thyssen
executives had mishandled DM 73 million (US$49 million) in funds connected to the privatization of a
former East German metals trading company. In late 1997 he was formally charged in connection with
this investigation. For the year ending in September 1996, Thyssen reported a 36 percent decline in
pretax profits. In response to these struggles, the company announced a major restructuring in late
1996 aiming for the withdrawal from or scaling back of activities in noncore areas, including long steel
products, defense equipment, and coal and oil trading. Further, after failing in the summer of 1996 to
forge a link in the telecommunications sector with Deutsche Bahn, the German national railway,
Thyssen scaled back its involvement in that sector. In late 1997 Thyssen sold its stake in a German
cellular-phone operator to Veba AG and RWE AG for DM 2.26 billion (US$1.26 billion). Also in 1997
Thyssen merged its shipbuilding operations with those of Preussag AG to form the largest shipbuilding
concern in Germany, with annual sales of DM 3.5 billion (US$1.83 billion).

In March 1997 Krupp initiated a hostile takeover of Thyssen, which failed, but led to the late 1997
creation of Thyssen Krupp Stahl, a flat steel joint venture; additional negotiations then resulted in the
March 1999 merger of the two companies to form Thyssen Krupp (these events are described in more
detail below). Meantime, Thyssen finally appeared to have turned around its financial difficulties--sales
were on the rise and net income was a very strong DM 2.19 billion by the 1997-98 fiscal year. The
company's renewed focus was evident in its pursuit and completion of several significant acquisitions.
In 1997 Thyssen acquired U.S.-based Copper and Brass Sales Inc., a leading trading and service center
for nonferrous metals in North America. That same year, Thyssen paid US$675 million to acquire
another U.S. firm, Giddings & Lewis Inc., the largest machine-tool maker in the United States. Giddings
fit in well with Thyssen's already considerable auto-related operations, since the Fond du Lac,
Wisconsin-based firm derived about 40 percent of its revenue from that industrial sector. In early
January 1999 Thyssen, through its Thyssen Industries unit, purchased the North American elevator
operations of Dover Corporation, including the Dover Elevator brand, for US$1.1 billion. Thyssen was
already one of the top elevator firms worldwide, and with the addition of Dover Elevator became one
of the top three or four companies in that area.

Krupp's Napoleonic Era Roots

The company that would eventually be known as Fried. Krupp GmbH, and then Fried. Krupp AG Hoesch-
Krupp, was established on November 20, 1811, by Friedrich Krupp, member of a family of merchants
whose roots in Essen can be traced back to 1587, and his two partners, brothers Georg Carl Gottfried
von Kechel and Wilhelm Georg Ludwig von Kechel. They set up a factory for making English cast steel
and products manufactured from it. There was a ready market for these products due to Napoleon's
Continental Blockade, which prevented imports of cast steel from England. The two partners
contributed the metallurgical knowledge, while Friedrich Krupp handled the commercial side and
provided the necessary capital. When the steelmaking experiments of the two partners--and later of a
third, Friedrich Nicolai--proved unsuccessful, Friedrich Krupp ran the factory on his own from 1816
onwards and developed a process for making high-quality cast steel on a factory scale. His products
included cast steel bars, tanner's tools, coining dies, and unfinished rolls. In the years that followed,
however, Friedrich Krupp failed to operate the factory at a profit. Competition was severe--
particularly from Britain--and while Krupp's prices were too low, his production costs were too high. In
addition, product quality varied because, owing to a lack of funds, Krupp occasionally had to use
inferior raw materials. Only the family's considerable assets, which in the end were totally consumed,
prevented the firm from going bankrupt. When Friedrich Krupp died in 1826, production had almost
come to a standstill.

Therese Krupp, his widow, kept the firm going, supported by her relatives and her 14-year-old eldest
son, Alfred. With only a few workers at first, the manufacture of cast steel continued. When in 1830
Alfred Krupp started to manufacture finished products, he was able to endorse these with his personal
guarantee of quality. Output, however, remained at a low level.

Only after 1834 did the firm experience vigorous expansion. The lifting of customs barriers by the
German Customs Union--an agreement between the German states, before their unification, to remove
trade barriers between them and create a single economic entity--in 1834 boosted sales, and the
purchase of a steam engine, financed by a new partner, helped to make production more cost
efficient. Alfred Krupp endeavored above all to perfect the manufacture of high-precision rolls, which
he later supplied additionally in rolling machines and rolling mills. Together with his two brothers he
developed in the early 1840s a mill for stamping, rolling, and embossing spoons and forks in one
operation. Krupp took numerous journeys to find customers abroad, particularly in France, Austria, and
Russia. A long sojourn in England enabled him to widen his knowledge of steelmaking and factory
organization.

The firm's expansion did not follow a steady course, mainly because the market for rolls and rolling
mills was limited. Further, there was no replacement market, since Krupp's rolls were virtually
indestructible. The attempt to establish cutlery factories succeeded only in Austria, where in 1843
Krupp--together with Alexander Schoeller--founded the works at Berndorf near Vienna, which from
1849 onwards was managed by his brother Hermann. The search for new applications for his high-
quality but expensive cast steel was unsuccessful at first. The general economic malaise which set in
around 1846-47 hit the cast steel works badly. In April 1848 Alfred Krupp, now sole owner, could only
save it from ruin by selling off personal assets and then by winning a major order from Russia for
cutlery machinery.

Krupp Expanded into Railway Equipment and Cannon-Making in the 1850s

Around 1850 business started to pick up again. The burgeoning of the railways opened up a virtually
unlimited market for Krupp's hard-wearing cast steel. Along with axles and springs, the firm's most
important product in this field was the forged and rolled seamless railway tire. Invented by Alfred
Krupp in 1852-53, this proved able to withstand the increasing track speeds without fracturing. In 1859
the breakthrough into cannon-making was achieved with an order from Prussia for 300 cast-steel
cannon-barrel ingots.

To secure sales, Alfred Krupp sought new markets on other continents. He journeyed abroad,
established agencies, and participated in international exhibitions. At the Crystal Palace Exhibition
held in London in 1851, Krupp displayed a cast-steel cannon barrel which attracted great interest; for a
cast-steel ingot weighing approximately 40 hundredweight he received the highest accolade, the
Council Medal.
At an early stage Krupp introduced new, economic steelmaking processes, for instance the Bessemer
process in 1862 as well as the open-hearth process in 1869. For products that had to be particularly
tough, crucible steel remained his most important starting material. It was around this time that Krupp
adopted a policy of acquiring ore deposits, coal mines, and iron works to secure the company's rapidly
growing requirement of raw materials. With the swift expansion of the company--in 1865 the workforce
totaled 8,248 and sales 15.7 million marks--it became necessary to delegate managerial tasks. In 1862
Alfred Krupp established a corporate body of management bearing joint responsibility for the affairs of
the firm. His general directive of 1872 laid down the principles to be applied in running his enterprise
as well as the social welfare policy to be pursued.

From the outset Alfred Krupp strove to create and maintain a loyal set of highly skilled employees.
Only thus could he guarantee the high quality of his products. To alleviate the social problems caused
by industrialization he introduced employee welfare schemes, at the same time enjoining his workers
not to become involved in trade-union or social-democratic activity. As early as 1836 he set up a
voluntary sickness and burial fund, which became a compulsory sickness and death benefit insurance
scheme in 1853. In 1855 Alfred Krupp established a pension scheme and in 1858 a company-owned
bakery that evolved into the employees' retail store. In 1856 the first hostels were built offering board
and lodging to bachelor workers. The year 1861 saw the construction of the first company dwellings for
foremen. Worker's housing estates, incorporating schools and branches of a retail store, followed in
1863, and from the early 1870s grew apace. In 1870 a company hospital was established.

In the years up to 1873 the firm continued to expand strongly. However, in the economic slump of 1874
it almost suffered financial collapse because Krupp had raised large bank loans without arranging
adequate security. Thereafter the company entered a phase of steady development. The gunnery
division was engaged in efforts to develop better field, siege, and naval guns. The divisions producing
machinery components, shipbuilding material, and railway equipment were expanded. When Alfred
Krupp died in 1887, the firm's employees numbered 20,200 and sales for 1887-88 amounted to 47.5
million marks.

Even during his lifetime Alfred Krupp was known as the Cannon King, mainly because during the Franco-
Prussian War of 1870-71 Krupp's cast-steel guns had proved superior to the French bronze cannon. The
way the firm presented itself to the public reflected the spirit of the times and for decades the
manufacture of guns was given a prominence beyond its actual share of production. In fact, up to 1905
armaments generally accounted for less--and in some cases considerably less--than 50 percent of
output; in the years leading up to World War I the proportion was between 50 and 60 percent.

Krupp Acquired Gruson Works and Germania Shipyard in the 1890s

Alfred's only son and heir, Friedrich Alfred Krupp, continued the expansion of the enterprise into a
horizontally and vertically integrated concern. Entry into the production of armor plate at the behest
of the Imperial Navy led in 1892-93 to the acquisition of the strongest competitor in this field, the
Gruson works in Magdeburg. Production of armor plate was then concentrated in Essen while work in
Magdeburg focused on the design and construction of plant and machinery.

At the urgings of his directors, as well as of Emperor Wilhelm II and the Imperial Navy, Krupp decided
in 1896 to take over the Germania shipyard in Kiel. The plant was leased that year, and acquired in
1902. At this time Admiral Tirpitz, secretary of state for the Imperial Navy, introduced the program for
the expansion of the German fleet under the Fleet Acts. The resultant boost to the German
shipbuilding industry also benefited the Germania yard where, in addition to merchant vessels,
warships clad in Krupp armor plating were now built. The year 1902 saw the building of the
experimental submarine Forelle, forerunner of the U-boat. At the same time the company began
producing diesel engines at the Germania yard, following the development of the first working diesel
engine in 1897 by Rudolf Diesel in collaboration with Krupp and Maschinenfabrik Augsburg.

The construction in 1897 of a large integrated iron and steel works at Rheinhausen strengthened the
company's solid footing in iron and steel. A few years later the Thomas process was adopted there for
the mass production of steel. Further ore and coal mines were acquired to cover the increasing raw
materials requirements. Friedrich Alfred Krupp was particularly interested in the technology of
steelmaking. He introduced scientific research into steel at Krupp and thus created the springboard for
the successful development of special-steel production.

Friedrich Alfred Krupp expanded the employee welfare and benefit schemes, not only at Essen but also
at the outlying works. He widened the scope of the health funds, built new housing estates, and
created the Altenhof estate for retired and disabled workmen. He established educational and leisure
amenities for his employees, in particular a lending library with numerous branches and an educational
society.

During his lifetime Friedrich Alfred Krupp was caught in the crossfire of public debate. While to many
he was a successful industrialist with a sense of national responsibility, his critics saw him as a
capitalist entrepreneur who, through his links with the Imperial House and his support of the German
Navy League, a nongovernment association formed to promote the strengthening of the German fleet,
exerted influence on the country's naval policy in order to gain lucrative contracts for his company.
The spectacular acquisitions of the Gruson works and the Germania yard readily lent themselves to
such an interpretation.

In later literature too, Friedrich Alfred Krupp has been presented in controversial terms. New research
has proven, however, that it was not he who initiated the program of naval expansion started in 1897-
98. The main impetus came from Admiral Tirpitz and the circle of people close to Emperor Wilhelm II.
Friedrich Alfred Krupp only acted in response to this policy.

When Friedrich Alfred Krupp died suddenly at the age of 48 in 1902, Bertha Krupp, the elder of his two
daughters, inherited the company, which--as recommended in the will of the later owner--was
converted into a stock corporation in 1903, when it became known as Fried. Krupp AG. Almost all the
shares remained in the ownership of Bertha Krupp. When in 1906 she married Gustav von Bohlen und
Halbach, counsellor to the Royal Prussian Legation at the Vatican, Wilhelm II as king of Prussia
accorded Gustav the right to bear the name Krupp von Bohlen und Halbach and to pass on this name to
his successors as owners of the company. After the wedding Gustav Krupp von Bohlen und Halbach was
appointed to the supervisory board of Fried. Krupp AG, which he chaired from 1909 until the end of
1943.

In the years leading up to World War I, order books were healthy and the company continued to
expand. By 1903 the workforce had increased to 42,000 and by 1913 to 77,000, with sales rising from
91.4 million marks in 1902-03 to 430.7 million marks in 1912-13. The increase in productivity mainly
reflected the expansion of the Rheinhausen iron and steel works and the resultant fundamental
reorganization of production in Essen.

In 1908 electric steelmaking was introduced at the Essen works. After a few years the company was
making electric steels of such quality that they were able to partly replace high-grade crucible steel.
Intensive research into alloying came to fruition in 1912 with the development of stainless chromium-
nickel steels which, besides being resistant to corrosion, were also able to withstand the effects of acid
and heat and were thus suitable for a wide range of applications.

The continuation and expansion of employee benefits and welfare remained key elements of corporate
policy. Margarethe Krupp, the widow of Friedrich Alfred Krupp, established a domestic nursing service
and provided the financial base for the Margarethenhöhe garden suburb. The company continued to
build housing estates for its workers, these efforts being increasingly supplemented by independent
housing associations closely linked to Krupp. Convalescent homes and a dental clinic were built, and
the Arnoldhaus lying-in hospital was founded.

Krupp Increased Munitions Production During World War I

World War I brought an increase in armaments production and a further expansion of the company. In
order to fulfill government contracts, munitions output was doubled in the first year of the war and by
the third year it had reached more than five times its pre-1914 level. This output was achieved,
particularly after 1916, by building huge new factories and increasing the workforce substantially. In
November 1918 Krupp's employees totaled 168,000. Well-known products in these years were the 16.5-
inch Big Bertha gun, 27 of which went into action in 1914; the merchant submarines Deutschland and
Bremen, built at the Germania yard in 1915--16; and the long-barreled "Paris gun" with a range of 85
miles, of which seven were built.

Both at the time and in some of the subsequent literature the firm and the Krupp family were accused
of having been the main beneficiaries of the war. More recent researchers have demonstrated how
inaccurate a picture this was: compared with other companies only a relatively small portion of the
profits initially earned were distributed to the shareholders, whereas the main part was invested in the
new factory buildings which later were of little use. High personnel and welfare costs during but
especially immediately after the war and the cost of converting to peacetime manufacture exhausted
the company's substantial reserves. With the ending of hostilities the demand for armaments ceased.
Under the Treaty of Versailles the company was prohibited from making ammunition, and cannon
manufacture was allowed only to a limited extent. Krupp changed its production and embarked on the
manufacture of locomotives, motor trucks, agricultural machinery, and excavators. The cost of
reorganization, the wages for workers actually no longer needed, and the losses incurred through
dismantling, inflation, and the dispute over the Ruhr River, when the government implemented a
strategy of passive resistance to the occupation of the region by French and Belgian troops, plunged
the company into a crisis in 1924--25 that threatened its very existence. Gustav Krupp von Bohlen und
Halbach had no choice but to implement drastic cutbacks. Having initially refused for social reasons, he
reduced the workforce within two years from 71,000 to 46,000. Unviable operations were closed down,
production was streamlined, and newly launched but unprofitable mechanical engineering activities
were discontinued. Even then the company would not have overcome the crisis had it not been for the
financial support it received from a combination of government agencies and banks.

Gustav Krupp von Bohlen und Halbach rejected the proposal of his directors that the Krupp works be
closed down or incorporated in Vereinigte Stahlwerke, a combination of German steel companies,
which was about to be established. He did, however, finally accept the suggestion made by Krupp
director Otto Wiedfeld, who from 1922 until early 1925 was German ambassador to the United States,
that the company be rehabilitated by selling a 50 percent shareholding to the British government. This
plan had to be quickly abandoned, however, because the German government felt its policy of
rapprochement with France might be jeopardized.

In the years that followed, the company gained a more stable footing, mainly by streamlining the
fabricating operations and expanding the production of special steels. Between 1927 and 1929 a blast-
furnace plant was added to the melting shops and rolling mills in the Borbeck district of Essen to form
an integrated iron and steel works. One of the most modern in Europe, it enabled the production of
special steel to be increased further. In 1926 Krupp introduced Widia sintered carbide, a product
which, by virtue of exceptional hardness and wear resistance, brought a major breakthrough in tool
engineering.
Close Alliance with Nazis: Early 1930s

The Great Depression, which first hit the world economy in 1929, brought this revival to an abrupt halt.
The workforce, which by 1928 had risen to 92,300, fell back to 46,100 by 1932. Sales dropped from
577.5 million reichsmarks in 1928--29 to 240 million in 1931--32. After 1933 Germany experienced an
economic upturn during which corporate policy at Krupp became closely entwined with the economic
policy of the National Socialists. Governmental efforts to achieve self-sufficiency included the
development of the country's iron ore deposits. The Renn process introduced by Krupp in 1929
permitted these inferior ores to be reduced economically. A coal conversion plant was built for
producing petrol from coal. Increasing demand for rolled-steel products, especially for building the
new autobahns, spawned the expansion of Krupp's structural engineering shops in Rheinhausen. Under
the Four-Year Plan the state took increasing control of industry and at Krupp the production of
locomotives, motor trucks, and ships was stepped up against the will of the company's directors. They
wanted to give priority to the successful production of special steels and their fabrication for use in
chemical process plant and other applications. In 1938, following the death of proprietor Arthur Krupp,
son of Hermann Krupp, the Berndorf works near Vienna was incorporated in the concern. Krupp also
expanded its shipbuilding activities by acquiring a majority shareholding in Deutsche Schiff-und
Maschinenbau Aktiengesellschaft "Deschimag" in 1940--41. Sales rose from 809.6 million reichsmarks in
1937--38 to 1.1 billion in 1942--43; in the same period the number of employees rose from 123,400 to
235,000.

In the 1920s Krupp had, at the behest and later with the financial support of the German Reichswehr
Office, undertaken design work of a military nature going beyond the tight restrictions imposed by the
Treaty of Versailles. The resultant vehicles and equipment were manufactured in collaboration with
other firms. In the 1930s work on the design and manufacture of armaments was stepped up, and
during the war these activities were greatly intensified, controlled as they were by the state's grip on
the economy. Weapons made up a much smaller proportion of total output than during World War I,
however, because the manufacture of motor trucks, locomotives, bridges, ships, and especially
submarines, continued at a high level.

Research has shown that in spite of claims to the contrary, Gustav Krupp von Bohlen und Halbach,
president of the federation of German industry from 1931 to 1934, did not support Hitler or the Nazi
party before they came to power. In keeping with his sense of national loyalty, however, he expressed
his support for the state after Hitler's appointment as Reichskanzler.

At the end of 1943 the firm was reconverted into a sole proprietorship and transferred to Gustav's
eldest son Alfried. The armaments authorities and semiofficial control committees were intervening
more and more in industrial activity. Out of loyalty to his war-torn country Alfried endeavored to meet
the demands imposed, though the lack of skilled workers, air raids, and the relocation of operations
made this increasingly difficult. Like most of the armament factories in Germany during the war, Krupp
used forced labor, as most of its workers had been called up for military service.

At the end of the war large areas of the works lay in ruins and much of what remained, like the iron
and steel works in Essen-Borbeck, was compulsorily dismantled. The Gruson works and Berndorfer
Metallwarenfabrik were expropriated by order of the Allies, and the Germania shipyard, also severely
damaged by bombing, was dismantled and liquidated.

Gustav Krupp von Bohlen und Halbach was indicted for war crimes by the International Military Tribunal
in Nuremberg but was found to be physically and mentally unable to stand trial. The suggestion made
by the American, Russian, and French prosecuting counsels that his son Alfried be indicted in his place
was rejected by the British prosecutor on the grounds that they were not conducting a game in which
one player could be replaced by another. Nevertheless, Alfried Krupp von Bohlen und Halbach was put
under arrest by the American occupying troops in Essen on April 11, 1945. His property was
confiscated, and he was kept in prison until he was accused before a U.S. military court in 1947
together with members of the firm's senior staff. This was one of three trials against industrialists.
Alfried Krupp von Bohlen und Halbach and his leading staff were accused of having planned and
participated in a war of aggression, but were declared not guilty of these charges. Of the other charges
of the indictment, criminal spoliation in occupied countries and promotion of slave labor, they were
found guilty on July 31, 1948. In 1951 their prison terms were cut short and they were released. Two
years later Alfried Krupp von Bohlen und Halbach resumed the management of his firm, which since
1945 had been under the control of the British military government.

Postwar Rebuilding of Krupp

The company's situation was perilous. On top of the losses already mentioned came the Allied
divestment order under which Krupp was compelled to sever and sell its mining and steelmaking
operations. The firm thus faced the loss of its raw materials base, in particular its vital steel interests.
In 1951 Alfried Krupp von Bohlen und Halbach had declared that he would never again produce
weapons. The object, therefore, was to shape a newly structured concern from the remaining
manufacturing and engineering activities, comprising the locomotive and motor truck works, the Widia
hard-metal plant, the forging and foundry shops, and the structural engineering operation in
Rheinhausen. This restructuring was achieved in the years that followed. New markets were opened up
in the developing countries for the engineering and construction of industrial plants. Together with
Berthold Beitz, whom he had appointed as his chief executive at the end of 1953, Krupp contributed
personally to this effort by making numerous order-winning trips abroad. The range of manufacturing
and engineering activities was made as varied as possible in order to assure continuity of employment
in the face of changing markets. In 1958 sales, including the coal and steel operations still subject to
the divestment order, amounted to DM 3.3 billion, generated by a workforce of 105,200. Krupp had
become the highest-revenue German company.

The Allied divestment order could only be complied with to a minor extent for lack of purchase offers.
In 1960 Krupp therefore combined its remaining coal and steel operations and strengthened this base in
1965 through a merger with Bochumer Verein für Gusstahlfabrikation, a steel company in Bochum in
which a majority shareholding had been acquired at the end of the 1950s. Krupp thus regained a
position in the production of special steels, which it had lost with the dismantling of the Borbeck steel
plant. In 1961 the company opened a plant in Brazil to make drop forgings for internal combustion
engines and vehicles. In 1964 Krupp acquired a majority shareholding in Atlas-Werke AG, Bremen,
including MaK Maschinenbau GmbH, Kiel.

In line with the general economic situation, the company followed a positive course into the mid-
1960s, apart from a brief downturn in 1962--63. Nevertheless, until withdrawn in 1968, the divestment
order prevented the company from developing a comprehensive long-term policy of corporate
restructuring and investment. The financial crisis into which the company plunged in 1967 was largely
triggered by the high level of supplier credits that had to be granted in the strongly expanding export
business. As security for the banks, the federal and state governments provided guarantees, which,
however, did not need to be taken up. The guarantees were subject to the condition that the sole
proprietorship Fried. Krupp be converted into a stock corporation. This requirement dovetailed with
the decision already taken by the owner to adapt the enterprise to the requirements of modern
business and secure its future by changing its legal structure. In the terms of his will, Alfried Krupp von
Bohlen und Halbach provided for the establishment of a nonprofit foundation. Since his son Arndt had
renounced his inheritance before his father's death, leaving the way clear for the firm to be converted
into a corporation, ownership of the late owner's private assets and the corporate property combined
in the firm of Fried. Krupp was vested in the foundation. Alfried Krupp thus continued in modern form
the idea formulated by his great-grandfather that ownership incurs social responsibility: the company
would be run as a private-sector enterprise but its earnings used to serve the community at large.
Became Fried. Krupp GmbH in 1968

Alfried Krupp von Bohlen und Halbach died in July 1967. In 1968 the firm was entered in the
Commercial Register as a limited-liability company, Fried. Krupp GmbH, with a capital stock of DM 500
million. Managerial responsibility was assigned to an executive board having the same powers as the
management board of a stock corporation under German law. All shares in Fried. Krupp GmbH were
placed in the ownership of the Alfried Krupp von Bohlen und Halbach Foundation, whose object was to
preserve the company's coherence and to serve the public benefit. Berthold Beitz was chairman of the
foundation's board of trustees. From 1970 to 1989 he was chairman of the supervisory board of Fried.
Krupp GmbH. The foundation funded projects in Germany and abroad in the fields of science and
research, education and training, public health, sports, literature, and the fine arts. Between 1968 and
1990 the foundation awarded grants totaling around DM 360 million.

In 1969 the coal mining assets were severed from the group and transferred to Ruhrkohle AG. Over the
subsequent years activities in the engineering and construction of industrial plant were expanded,
especially with the acquisition of Polysius AG and Heinrich Koppers GmbH. The steelmaking arm further
strengthened its special-steel operations by acquiring Stahlwerke Südwestfalen AG.

In 1974 the state of Iran acquired a 25.04 percent interest in the stock capital of the steel subsidiary
Fried. Krupp Hüttenwerke AG, strengthening the equity base. In 1976 Iran also acquired a 25.01
percent stake in Fried. Krupp GmbH, whose capital stock was increased to DM 700 million by the
summer of 1978. Following the Iranian Revolution of 1979, these ownership interests were held by the
Islamic Republic of Iran.

The 1980s saw the implementation of various restructuring schemes. Krupp sold off its interests in
shipbuilding, an area of heavy losses. The steelmaking sector reduced its output of tonnage steel and in
1987--88 the plan to close the iron and steel works in Rheinhausen was met by a campaign of protest
from the workforce. The works were kept in operation to a limited extent. At the same time Krupp
further strengthened its activities in special steel--for example, by acquiring VDM Nickel-Technologie
AG in 1989&mdash well as in mechanical engineering and electronics. In 1989 Gerhard Cromme became
chairman and chief executive of Krupp. By 1990 the company, having successfully completed the
restructuring, was back in the black and paid its first dividend in 16 years.

Completed Hostile Takeover of Hoesch in 1992

In 1991 Krupp secretly paid DM 500 million (US$294 million) to take a 24.9 percent stake in Hoesch AG,
a neighboring and struggling steelmaker headquartered in Dortmund with a history dating back to the
1820s. Hoesch was having difficulty competing with its much larger rivals as the early 1990s were
marked by overcapacity in steel throughout Europe. German steelmakers were particularly vulnerable
because steel prices in that country were the highest in Europe. Krupp saw a takeover of Hoesch as a
great opportunity to rationalize the two companies' operations and cut costs. In December 1991 Krupp
increased its stake in Hoesch to nearly 51 percent. Hoesch continued to resist being taking over, but by
mid-1992 Krupp had won the battle and a merger of the two firms was backdated to January 1 of that
year, creating Germany's second largest steel producer (trailing Thyssen).
The newly and cumbersomely named Fried. Krupp AG Hoesch Krupp--still headed by Cromme--had
steelmaking capacity of around eight million metric tons and sales of about DM 28 billion (US$18.9
billion). The new Krupp had six divisions: steel, engineering, plant construction, automotive supplies,
trade, and services. In January 1993 Krupp became a publicly traded company for the first time in its
long history, though as late as the 1997--98 fiscal year the Alfried Krupp von Bohlen und Halbach
Foundation still held a 50.47 percent stake while the Iranian government held 22.92 percent. The
restructuring that followed the takeover of Hoesch including the shedding of more than 20,000 jobs
and the closure of one of the combined company's two main integrated steel plants. Two years of
heavy losses followed before Krupp posted a modest net profit of DM 40 million (US$29.2 million) for
1994.

The Long Road to the Thyssen-Krupp Merger

Following Krupp's 1994 takeover of Accial Speciali Terni, an Italian stainless steelmaker, the company
in 1995 merged its enlarged stainless steel operations with those of Thyssen in the Krupp-Thyssen
Nirosta joint venture, 60 percent owned by Krupp and 40 percent owned by Thyssen. In March 1997
Krupp launched a DM 13.6 billion (US$8 billion) hostile takeover bid of the larger Thyssen. This move
led to fierce protests from workers fearful of another round of massive industrial layoffs, as had
occurred after the Krupp takeover of Hoesch. When Cromme, dubbed the "job killer" because of those
same layoffs, met with protesting workers he was pelted with eggs and tomatoes. With Thyssen's
leadership resisting the attempted takeover, Krupp soon abandoned its hostile bid.

Nevertheless, Thyssen agreed to discuss with Krupp a merger of the two firm's flat steel operations,
with the negotiations leading to the establishment in September 1997 of Thyssen Krupp Stahl AG, which
was 60 percent owned by Thyssen and 40 percent owned by Krupp. Ekkehard Schulz, who had headed
Thyssen Stahl, was named chief executive of the joint venture. The companies immediately announced
that 25 percent of their flat steel workforce, or about 6,300 people, would lose their jobs as part of a
restructuring.

Krupp and Thyssen were not finished with their dealmaking, however, and surprised many analysts in
November 1997 with an announcement of a full merger of their entire companies. A key factor driving
the merger was the increasing globalization of the world economy. The two industrial giants needed to
be even larger in order to effectively compete on a global scale. After overcoming numerous hurdles,
the companies consummated their union in March 1999 with the formation of Thyssen Krupp AG. Vogel,
Thyssen's chief executive, still had the criminal charges hanging over him, and lost a battle to run the
new company. Cromme and Schulz were named co-chief executives of the new company, which
organized itself into six main divisions: Thyssen Krupp Steel, Thyssen Krupp Automotive, Thyssen Krupp
Industries, Thyssen Krupp Engineering, and Thyssen Krupp Materials & Services. The company expected
to slash annual costs by DM 1 billion (US$557 million) through the merger and intended to cut 2,000 of
its 173,000 jobs. Revenues were estimated at DM 70 billion (US$39 billion). One other consequence of
the merger was that the large stakes held by the main shareholders of Krupp were significantly diluted;
the Alfried Krupp von Bohlen und Halbach Foundation held an initial 16.82 percent interest in Thyssen
Krupp while the Iranian government held 7.64 percent. When combined--and these two parties
sometimes had joined to block certain board initiatives at Krupp--they held about 24.5 percent of
Thyssen Krupp, which was just less the 25 percent needed for a formal "blocking minority" per German
law.

Principal Divisions: Thyssen Krupp Steel AG; Thyssen Krupp Automotive AG; Thyssen Krupp Industries
AG; Thyssen Krupp Engineering AG; Thyssen Krupp Materials & Services AG.
 About Essar Steel
Essar Steel, global producer of steel, is a fully integrated
flat carbon steel manufacturer—from iron ore to ready-to-
market products. Essar Steel has a global steel production
capacity of 14 million tonnes per annum (MTPA). Its
products find wide acceptance in highly discerning
consumer sectors, such as automotive, white goods,
construction, engineering and shipbuilding. Essar Steel
produces highly customised products catering to a variety
of product segments and is India’s largest exporter of flat
products to the highly demanding US and European
markets, and to the growing markets of South East Asia and the Middle East. It has the country’s
most extensive Service Centre capability with an annual capacity of 2.5 MTPA, and the largest
network of steel retail outlets with over 230 branded Essar Hypermarts. It has invested in
downstream capabilities to evolve from being a product based company to becoming a value
added service provider.

Essar Steel to pay Rs600 cr for Shree Precoated Steels

After the acquisition by Essar Steel, Shree Precoated Steels will get an assured supply of nearly
0.5 mn tonnes of primary steel from Essar’s Hazira plant to feed its cold-rolling and galvanizing
units.

India’s third largest steel maker by capacity, Essar Steel Ltd or ESL, on Tuesday
signed an agreement to buy Pune-based Shree Precoated Steels Ltd for at least
Rs600 crore.
The acquisition will strengthen ESL’s presence in high-margin, value-added steel products. It
will also add Rs2,500 crore revenues a year to the unlisted ESL, after it doubles the operating
capacity of the four units of the Pune-based firm that makes value-added products, from 50% to
100%, Esser Steel business group chief executive officer J. Mehra said.

Strategic location: Essar Steel will have an advantage as it can supply to auto makers in Pune
from Shree Precoated Steels’ units.

The deal has filled in a gap in a chain between the primary steel maker and a retail chain known
as a hypermart, where it sells finished products.

ESL earned 30% of its Rs12,000 crore revenues in the year to March 2009 from 230 stores
across the country.

The company reported an operating profit of Rs2,600 crore last fiscal and has cash of Rs900
crore. The acquisitions will be funded with internal accruals, Mehra said.

ESL will take over Rs175 crore of long-term debt and other financial liabilities of the Pune firm
after a 60-day due diligence by Ernst and Young, the exclusive advisers to the transaction.

After the acquisition by ESL, Shree Precoated Steels will get an assured supply of nearly 0.5
million tonnes of primary steel from ESL’s Hazira plant to feed its cold-rolling and galvanizing
units.

Steel makers, who traditionally focused on primary hot-rolled coils for the construction sector,
are shifting to value-added products.

ESL, which has a 9.5 million tonnes capacity in India and additional 4 million tonnes capacity in
the US and Indonesia, can make custom-made steel products for white goods, automobile,
engineering and construction industry.

It will now have a locational advantage as it can supply to auto makers in Pune from Shree
Precoated Steels’ units at Ranjangaon.

Ajmera group, a real estate developer and the promoters of Shree Precoated Steels, spinned off
its steel business into a separate firm in January 2009.

ESSAR STEEL AFTER MERGER

Essar Steel to become the country’s largest cold roller with an annual capacity of 2 million tones.

Essar Steel to become the country’s largest colour coated steel producer with an annual capacity
of 0.4 million tonnes and the largest exporter of colour coated steel.

Essar Steel has the largest Service Centre facility with capacity of over 2.5 Million tonnes.
Essar Steel Hypermart with over 230 outlets is India’s largest retailer of steel in India.

Essar Steel Limited (Essar Steel) announced that it has entered into a definitive Business
Transfer Agreement with Shree Precoated Steels Limited (SPSL) to acquire the entire assets and
steel business of the Company. This agreement is subject to regulatory and other approvals.

As per the Agreement, the assets to be transferred include the plant comprising colour coating
line (annual capacity 4,00,000 tonnes), cold rolling mill (annual capacity of 600,000 tonnes),
galvanizing line (annual capacity of 500,000 tonnes) and pickling line (annual capacity 650,000
tonnes). Essar Steel will also take over the outstanding Bank/institutional debt and net current
assets of the company. The plant is strategically located at Sanaswadi near Pune, Maharashtra,
which is one of the largest steel consuming centre.

Commenting on the transaction, Mr. Shashi Ruia, Chairman, Essar Group said, “This is an
excellent addition to our steel business and will enable Essar Steel to provide the entire range of
flat steel products to our customers.”

This acquisition is a strategic fit for our steel business as this gives us leadership position in
many product segments and also gives us a foot print across different product segments.”

Essar Steel is the pioneer and one of the leading player in the colour coating industry and have
nurtured this business over the past 15 years. We strongly believe that an integrated player like
Essar Steel will be able to take this business to its next phase of growth. Ajmera Group will
continue to focus on its core activity of real estate.
On completion of the acquisition, Essar Steel will have the largest cold rolling capacity (2
Million tonnes), the largest Colour Coating facilities (0.4 million tonnes) largest galvanizing
capacity (one Million tonnes) and pickiling capacity of 2.2 million tonnes in the country.

This acquisition will make Essar Steel the country’s only steel plant with integrated facilities
from heavy plates, hot rolling, cold rolling, galvanizing and colour coating, with a full
distribution business with Service Centre and Steel Hypermarts.

Essar Steel will now be able to provide end to end service to address the customers’ needs. This
will support Essar Steel’ efforts to increase the share of value added products in its portfolio and
fits well in the company’s expansion plans of having manufacturing facilities in different
geographies.

Ernst & Young acted as the sole financial advisors to this transaction.
 MERGERS AND ACQUISITION OF ISPAT
INTERNATIONAL AND LNM HOLDINGS PVT.
LTD.
LNM HOLDINGS BEFORE MERGER

LNM Holdings N.V. (LNM Holdings) is a Netherlands Antilles registered steel holding
company, with over 120,000 employees, whose manufacturing facilities are only located in
developing member countries. IFC proposes to provide a corporate loan of up to $100 million to
LNM Holdings (for use only in developing member countries) to:

- enable it to improve the environmental performance of its present and future subsidiaries and
bring them up to World Bank Group, European Union, and local standards as appropriate;
- assist LNM Holdings on creating and maintaining an environmental and worker health and
safety system on a corporate wide level, so that it can help ensure that all its current and future
operations will meet World Bank, European Union, and local standards as appropriate; and
- help it continue to rehabilitate, de-bottleneck and provide working capital to its present and
future subsidiaries. LNM Holdings has no plans to add any significant nameplate liquid steel
capacity to any of its plants.

Steel plants, including related activities like coal and iron ore mines, have a huge impact on their
local communities by virtue of
- the large amount of people directly employed, normally between 10,000 and 60,000 per plant;
- the dependence of local towns on the plants; and
- their direct support of local activities and in some cases, utilities like electricity and heating. In
addition, as a result of the sheer size and scope of most steel plants, their environmental impact
on the community can also be significant. The project aims to assist LNM Holdings to meet
international environmental standards.

MERGER OF ISPAT INTERNATIONAL NV AND LNM HOLDINGS

Ispat International NV announced that its shareholders approved the acquisition of LNM
Holdings N.V. by Ispat International N.V. at an Extraordinary General Meeting of Shareholders
held today in Rotterdam. The transaction was expected to close on December 17, 2004.

The combined company, which will be named Mittal Steel Company N.V. and will trade on the
New York Stock Exchange and Euronext Amsterdam under the ticker symbol “MT,” will be one
of the world’s largest steel companies, with pro forma revenues for the nine months ending
September 30, 2004 of approximately $16 billion, steel shipments of 32 million tons, and
168,000 employees in 14 countries, across four continents.

At the Extraordinary Meeting, Ispat shareholders also approved the appointment of Ms. Vanisha
Mittal Bhatia to the Board of Directors of Mittal Steel. All other proposals were also approved
by a large majority of shareholders.

Following an announcement on October 25, a new company, Mittal Steel became the world's
largest steel company, with pro forma revenues in 2004 of $30bn and annual production capacity
of 70M short tons (63M metric tonnes). This has come about after Ispat International NV
announced that it has agreed to acquire LNM Holdings NV. Following completion of the
transaction, the company will be renamed Mittal Steel Company NV. The combined company
will have excellent positions in raw materials, particularly coal, coke and iron ore, as well as
strong positions in key end sectors. This combination also provides Mittal Steel with a more
significant presence in important industrialised economies such as those in North America and
Europe and in economies that are expected to experience above average growth in steel
consumption, including Asia and Africa.

Ispat International, a listed company based in The Netherlands operates in six countries in North
America and Western Europe, including the United States through Ispat Inland Inc. Ispat
International has annual total raw steel production capacity of over 18Mst and is targeting 2004
revenues of approximately $8.3bn.

LNM Holdings is a privately held company owned by Lakshmi Mittal, which operates in eight
countries in Europe, Africa and Asia. It has annual total raw steel production capacity of over
32Mst and is targeting 2004 revenues of approximately $14.5bn.
The International Steel Group (ISG) is one of the largest integrated steel producers in North
America and among the top ten globally. ISG was formed in April 2002 and has grown rapidly
by acquiring the steel making assets of LTV, Acme Steel, Bethlehem Steel, Weirton Steel and
Georgetown. ISG has annual total raw steel production capacity of approximately 20Mst and is
targeting 2004 revenues of approximately $9bn.

Mittal Steel's strategy will be to enhance long-term shareholder value and the combined
company will encompass all aspects of modern steelmaking to produce a comprehensive
portfolio of both flat and long steel products to meet a wide range of customer needs.

* Ispat International reported a Q3 income of $460M compared with a loss of $10M in 2003.
Total shipments were 3.7Mt in the quarter. Sales of LNM were close to $4bn and income
$1.26bn in Q3 to September on total shipments of 6.1Mt

The merger of Ispat International with LNM and ISG will help the former's raw materials supply
as LNM owns coal and iron ore mines and produces 18Mt/y ore, 12Mt/y coal and 13Mt/y of
coke.

Simultaneously, Ispat International and USA based International Steel Group Inc
announced that their Boards of Directors have unanimously approved a definitive
agreement under which Ispat International and ISG will merge. The combined Mittal
Steel will be the largest and most global steel company in the world and will be
listed on the New York Stock Exchange and Euronext Amsterdam.

Upon completion of both transactions, Mittal Steel will be the largest and among the most
profitable steel companies in the world.

Mittal Steel will have operations in 14 countries on four continents and 165000 employees. For
the nine months ended September 30, 2004, Mittal Steel had pro forma revenues of $22.5bn, pro
forma operating income of $4.9bn and pro forma total steel shipments of 43M US short ton (st).

For 2004, Mittal Steel expects pro forma revenues of over $31.5bn, pro forma operating income
of $6.8-7.0bn, pro forma total steel shipments of approximately 57Mst and pro forma net debt of
$3.2bn.

Lakshmi N Mittal will be chairman and chief executive officer of Mittal Steel. Wilbur L Ross,
chairman of ISG, will become a Board member of Mittal Steel. Rodney Mott, president and chief
executive officer of ISG, will become chief executive officer of Mittal Steel's combined US
operations.