Mittal Steel, run by L N Mittal, 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.