Mittal Steel said today that talks with takeover target Arcelor were continuing but the likely result was uncertain.
"Mittal Steel confirms that discussions are taking place with Arcelor. The outcome of these discussions remains uncertain at this stage," the group controlled by billionaire CEO Lakshmi Mittal said in a statement.
Mittal's comment comes after Arcelor said on Monday evening it had cancelled a shareholder meeting scheduled for June 21st on a planned €6.5 billion ($8.18 billion) share buy-back plan, seen as a defence measure against its rival.
Lakshmi Mittal told the Wall Street Journalthat Arcelor's decision made him increasingly confident he could convince Arcelor shareholders to back its offer to buy the European steel maker and pressure management into dropping its resistance.
But he warned that Arcelor's planned shareholders' meeting to back a white knight rescue plan with Russia's Severstal constituted the main "roadblock" ahead. The June 30th meeting is planned to give Arcelor shareholders the chance to oppose the deal.
Minority shareholder group ADAM said yesterday that it had taken legal steps to postpone it. "The rules of the votes that are planned by the convocation are in violation in regards to the law and the statutes of Arcelor," ADAM said in a letter sent to a Luxembourg court.
Arcelor said that it would cancel its deal with Severstal if shareholders representing 50 per cent of the capital voted against it.