New Delhi: There is some relief for steel baron Lakshmi Mittal.
Luxembourg Parliament's budget and finance commission has rejected the proposed changes to the country's corporate takeover laws.
These changes would have been an obstacle to Mittal Steel's $22 bn bid for Luxembourg-based Arcelor.
The rejected amendment suggested by the Luxembourg Chamber of Commerce, would have made full cash payment necessary for takeovers unless 25 per cent of the bidder's shares were listed.
This measure could have posed problems for Mittal, since his offer for Arcelor was made 75 per cent in shares, rather than cash.
But the ordeal is not fully over for Mittal. The Finance Commission may work out new amendments on the cash proportion for takeover offers.
Arcelor, the world's second-largest steelmaker, had earlier rejected a takeover bid by Mittal Steel - who, as number one, is the world's largest metal producer.
It has recommended arcelor shareholders not to tender their shares to Mittal Steel.
Comments
0 comment