second-biggest steelmaker, bought 88.38 per cent of Canada's Dofasco and extended its $4.8 billion takeover offer for the remaining stock.
London: Arcelor, the world's second-biggest steelmaker, bought 88.38 per cent of Canada's Dofasco and extended its $4.8 billion takeover offer for the remaining stock.
This could mean a big setback for L N Mittal's takeover bid for Arcelor.
Arcelor, based in Luxembourg, will continue Dofasco shareholders to trade until March 7, from an original deadline of Sunday, the company said in a statement.
"Dofasco becomes the centre of Arcelor's growth strategy in North America, and cornerstone of our continued worldwide leadership in the market for automotive steel," Chief
Executive Officer Guy Dolle said in the statement.
Arcelor is expanding in North America to challenge Mittal Steel Co's leadership in the car-steel market.
Dofasco would give it a 10 per cent slice of the market and supply contracts with Ford Motor and Toyota Motor.
Arcelor is the target of a $22.5 billion hostile takeover bid by Mittal, which would create a company three times larger than its nearest rival.
The spread suggests that investors are betting the acquisition of Arcelor will be completed at a price higher
than Mittal's current bid.
Mittal said it would sell Dofasco to German rival ThyssenKrupp AG if it succeeds in winning Arcelor.
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