And above all it has already been proven733 fraud constituting a prejudice to EUR 85The map and the territory is already a bestsellerIn the immediate future the tube What I feel is especially demanding for earsThese restrictions were not cooled TrenitaliaThe main subject of opposition concerns by George w9 watts points out satisfied Maxime LanquetuitIt is found barely grimée differently under several facesThis is normal and better it is healthyNokia is not in the world of communication for nothingBetween Arcelor and Mittal, the first difference is that one has to do to a company owned by a set of shareholders on the one hand, to a company owned by one shareholder of the other. This means that, within the rights of the minority, Lakshmi Mittal has the right to pursue a policy that it is on the heritage plan and the strategic plan. No one can challenge his decisions to sell assets when it deems appropriate for its objectives.
The question of the type of shareholder is Lakshmi Mittal is therefore far from being a minor issue. It manages a portfolio of steel assets in financial, sells and buys these assets based on a close heritage portfolio management strategy. It is intelligent and clever, but the European context is delicate. He built an empire, took care to structure the transaction without losing the control of Mittal Steel. This does not increase its offer price.
The second difference, is that he wants to acquire Arcelor using shares in his company: these actions will therefore be affected by the cost of acquisition, including the premium for acquiring paid in shares to the shareholders of Arcelor, which will be reflected in the balance sheet of the combined company, including the debt of 14 billions of dollars that will be displayed in its balance sheet, result both of this transaction funding of previous acquisitions. Even if the banks, highly liquid at this time, were ready to increase their loans, the Mittal-Arcelor consolidated balance sheet leverage would be increased if it increased its offer "cash" portion.
The third difference comes from a "goodwill" of acquisition it will have to depreciate and casting the results of the company for the next twenty years of close to half a billion dollars per year. Synergies will therefore come that rationalizations (hear, closures) and of cost reductions (hear, reduction of staff). It is difficult to imagine synergies of 1 billion per year without touching the fabric and the perimeter of the group. It is impossible to keep commitments and generate announced synergies.
The fourth difference is in the nature of the steel activities of the two companies: Arcelor pushed far special products with high added value, Mittal is still very close to the mine and commodities. Put things to the point. Mittal is not the first global steelmaker. Arcelor has sales of $ 40 billion, while Mittal has sales of $ 30 billion. The nature of the activities is different, and Mittal began to suffer seriously: in 2005, its course of stock exchange declined 30, and its revenues. For Mittal, it is essential to acquire Arcelor to temper the structural decline in results related to its vulnerability to price. Would it be a leak in front that grows Where would the interest of the shareholders of Arcelor
The movement of sales of Arcelor securities who find themselves in the hands of dealers and "hedge funds" creates a volatile ownership. As very often in these cases, number of shareholders preferred to take their profit in shares Mittal. Today, 60 of Arcelor capital changed hands. Systemic risk exists at the level of "hedge funds", which domino effects are difficult to predict if they are not their implementation. Should probably wait for the results of investigations of the control authorities to understand how, in the weeks preceding the announcement of the offer, the title Mittal, detained more than 80 by Lakshmi Mittal, flew after a loss in value of 30. "hedge funds" will sell Mittal titles acquired to the OPA: who will be there to buy a such percentage of the capital
Where are we in the cycle of steel Prices are at historic highs, but are beginning to give signs of weakness. Mittal bought at the top of the cycles in the United States, Romania or Ukraine. Can it cope with a reversal of the situation Finally, I would add that this is not an Indian operation. Mittal is a Dutch company. It would be inappropriate to engage in nationalistic considerations at this level. The fact that Lakshmi Mittal is Indian does not mean that Indian capitalism means become predatory. Those who know the leaders and Indian business owners know the prudence of their approach and their respect for differences.
