Steel

Arcelor should resist a poison-pill defence

8 Feb 2006

A government ruling has cleared the way for the Luxembourgregistered steelmaker to issue buckets of shares to see off Mittal s hostile bid. But that could backfire. Protracted legal challenges are one problem. And Arcelor might end up with new shareholders it could do without.

Arcelor boss should stop speaking with forked tongue

6 Feb 2006

Guy Dolle is telling investors he wants to beat Mittal s hostile bid by winning the value argument. But he hasn t been giving politicians the same message. He should tell them to mind their own business and let the market decide.

Will Nippon come to Arcelor’s rescue?

2 Feb 2006

A white knight bid by the Japanese group would be great for shareholders as it could set off a bidding war with Mittal. Sadly, it looks unlikely. There s also a risk Nippon might be brought into a shareholderunfriendly deal that stops short of a takeover.

Breton starts to talk sense on Arcelor

2 Feb 2006

The French finance minister has backtracked on his previous blind opposition to Mittal s bid. Now he says it s up to the consciences of shareholders. That's where it belongs.

Arcelor bid may open way to French hostile M&A

30 Jan 2006

The French establishment has been effective at deterring foreign bids for national champions like Aventis or Danone. But Arcelor will find it hard to persuade the government to help it stave off Mittal s E19bn bid. The Gallic bluff may have been called.

Mittal vulnerable to governance counterattack

30 Jan 2006

The steel giant is asking Arcelor shareholders to take $19bn of secondclass paper in exchange for their company. The fact that Mittal is a dynastic company that has yet to prove its global skills could become a big factor in this bitter battle.

ThyssenKrupp sensibly quits race for Dofasco

24 Jan 2006

The German conglomerate decided not to match Arcelor s latest C$71 per share bid for the Canadian steelmaker. It was a sensible retreat. Shares in both bidders rose on the news. But even at this price, Dofasco is hardly a bargain.

German companies show taste for hostility

24 Jan 2006

As BASF/Engelhard and Linde/BOC show, confident German executives are taking a muscular approach to building up foreign operations. Now they're playing the AngloSaxon game, it will be harder for German companies to put up the barricades the next time a foreigner attacks.

Arcelor, Thyssen play E3.9bn leapfrog for Dofasco

16 Jan 2006

Having been outbid by Thyssenkrupp on Saturday, Arcelor has jumped back into the lead, outbidding its rival by 4% and getting board backing. That makes six offers since the bidding war started in November. The ultimate winner still looks to be the Dofasco shareholders.

Arcelor teases Dofasco with raised E3.5bn offer

23 Dec 2005

That's only 2.4% more than ThyssenKrupp's agreed offer for the Canadian steel producer. And it is below the current share price. That is unlikely to win the day for the Parislisted steelmaker. But it may be enough to open negotiations.

ThyssenKrupp’s E3.5bn bid for Dofasco looks steep

28 Nov 2005

The German giant has emerged as a white knight for the Canadian steelmaker, trumping Arcelor with an agreed deal. But if Arcelor s bid was hard to justify, Thyssen s looks even more so.

Arcelor’s E3.2bn Dofasco bid looks flawed

23 Nov 2005

The EU steelmaker already lost auctions for more attractive assets in Turkey and Ukraine before making an offer for the Canadian producer. The hostile bid is expensive. And probably too late in the steel cycle. It would be better to return cash to shareholders.

Gold price rally looks unsustainable

12 Oct 2005

The dollar is stable and inflation expectations have not changed. Yet the gold price this week hit an 18year high. The best explanation is that real interest rates are low and global liquidity is high. But that s unlikely to last.

ThyssenKrupp points to slower steel growth

13 May 2005

Growth at the German conglomerate s steel division disappointed and margins at its elevator and auto divisions have fallen sharply. While other European steelmakers are still surging ahead, the cycle may be reaching its peak.

Corus reports leap in profits

17 Mar 2005

The AngloDutch steel group may resume paying a dividend this year after benefiting from soaring steel prices and sweeping cost reductions. But with iron ore prices escalating and steel demand expected to slow later this year, Corus days in the sun may prove shortlived.

Commodity rally should scare bond buyers

9 Mar 2005

Commodity funds and ultralong bonds are two of the hottest asset classes around. But it will be hard for both to do well. Rising commodity prices are a prime raw material for bondkilling inflation. But bond prices are still in a nofear zone.

Arcelor deserves a re-rating

17 Feb 2005

The world s second steel producer has delivered a ninefold increase in earnings on the back of rising steel prices and a major restructuring Its expansion into emerging markets should sustain growth even if steel prices start to fall.

Usmanov cashes in on Corus stake

15 Dec 2004

The Russian tycoon has pocketed more than £200m by hedging twothirds of his stake in the AngloDutch steelmaker. Corus may be relieved to see a troublesome shareholder go. But Usmanov s exit may signal the group s shares are at the top of the market.

Mittal billions prove conventional wisdom wrong

26 Oct 2004

Lakshmi Mittal bought steel assets when no one wanted them. And then he ran them better than anyone thought possible. The results have been global market leadership and huge cash flow. The company now fits the standard definition of industry leader.

Mittal deals create steel behemoth

25 Oct 2004

The Mittal family is merging its two steel companies to absorb ISG of the US. The $21bn merger will produce the world's biggest steelmaker. The deal is complex and the synergies aren't huge. But the Mittals have a good record of creating value.