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Severstal keen to outbid Mittal for Arcelor
Vinay Shukla in Moscow | June 26, 2006 15:25 IST
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.
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.
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.'
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