PARIS (AFX) - Russian steel group Severstal said it was surprised that it had not been invited by Arcelor SA's board to discuss its revised offer announced last week.
The group was responding to news that Arcelor has decided to accept an improved 40.4 eur per share offer from Mittal Steel Co NV and abandon its deal with Severstal.
In a statement, Severstal said it has a legally binding agreement with Arcelor and is considering its options.
Arcelor agreed in May to pursue a tie-up with Severstal in order to thwart Mittal's bid. But the agreement led to criticism from Arcelor's own shareholders, who complained that Severstal's chairman and largest shareholder, Alexey Mordashov, would effectively gain control of the company without having to pay a takeover premium to all shareholders.
In order to reassure Arcelor's shareholders, Severstal last week announced a new proposal, whereby Mordashov would hold 25 pct of the enlarged company, against the previously proposed 32 pct.
Arcelor's decision to break off the alliance with Severstal could result in the payment of a 140 mln eur breakup fee to Mordashov. newsdesk@afxnews.com afp/ak COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited