Hostile bid

Luxembourg: Netherlands-based Mittal Steel launched a hostile takeover bid for Luxembourg steel producer Arcelor at the end of January. The cash and shares deal values the company at € 18.6 billion (US$ 22 billion), and is currently being considered by regulators. Arcelor is the world's second largest steel producer, behind Mittal, and employs 94000 people worldwide. If the merger is successful the group will account for more than 10% of worldwide steel production and will have the capacity to produce more than 100 million tonnes per year.