Cost of the operation 4 billion to 5 billion

Arcelor Mittal takes form. "We will present Friday to the Board of Directors the composition of the Executive Committee of the new group," announced yesterday the President of the Board of Arcelor, Joseph Kinsch, at the presentation of the quarterly results. "This Committee will include 6 members, 3 selected by Arcelor and Mittal 3, be made public Friday afternoon upon agreement of the Council.". Source close to Arcelor, it ensures that director Roland will be Luxembourg,

Until they unite their leadership teams, Arcelor and Mittal have not lost time to unite their profits. Joseph Kinsch and Lakshmi Mittal presented yesterday common quarterly accounts, in a supportive environment, since the global steel market is recovering. A strong demand has deflated stocks and increased sale volumes. Moreover, pole stainless steel for Arcelor has operated in Europe a very net recovery. The new group appears however for the second quarter a net below expectations, to 1.3 billion euros ( 7 versus the first quarter), for a gross result (Ebitda) of 2.9 billion ( 8 in three months), and a turnover of 17.9 billion ( 3). But one year on year, the net result is declining: light in Mittal ( 7, to $ 1 billion) and severe in Arcelor, where it plunges 35, to EUR 653 million.

More smiling perspectives

Because the commodity boom continues unabated and the prices remain lower than last year. "Over one year, Arcelor Mittal has undergone a chisel of EUR 1.8 billion impact due to the decline in prices (960 million) and the increase in raw materials (900 million), said Chief Financial Officer of Arcelor, Gonzalo Urquijo." Even with the favourable effect of volumes and productivity gains, in the end the impact is negative $ 1.2 billion.

The Outlook is more smiling. "The market will remain favourable in all sectors and countries, and we move on to higher prices in the third and fourth quarters," said Gonzalo Urquijo. The objective of an Ebitda of Arcelor Mittal of 12 billion to EUR 12.5 billion in 2006 is therefore confirmed. The new group judge its content indebtedness, since net debt reached 54 of own funds, to 18 billion. The point is important because the Brazilian stock market regulator said yesterday that the change of control occurred in Arcelor required Arcelor Mittal to launch an offer to buy the 34 of minority of Arcelor Brazil, worth 11 billion dollars in stock. Cost of the operation: 4 billion to $ 5 billion...

The thorny subject of Dofasco

The Group has to fight, because he does not agree. "Our position has not changed: we believe do not have to launch an offer for the purchase of minority interests, said Gonzalo Urquijo.". The Technical Department of the stock market regulator Brazilian reasoned on the 92 of Arcelor by Mittal, giving him the majority in the new group. But OPA continues until 18 August and the objective is to obtain 100 of the securities of Arcelor, Mittal will then fall to 49.5 of the new set against 50.5 for Arcelor, there will be no change of control of the Brazilian subsidiaries.

Also remains the thorny subject of Arcelor, Dofasco, Canadian subsidiary that Mittal had committed to the US antitrust authorities to sell its OPA success. It will have to find a solution of withdrawal, because "Mittal President to sell Dofasco but it is impossible for at least five years, pounding Gonzalo Urquijo.". "It belongs to a Foundation, it has an independent Board and, moreover, we are very satisfied with her contribution to our results." Mittal will need to sell a portion of Mittal USA in his place. "We have to possibly negotiate with the U.S. Department of Justice which of our two settlements of Weirton or Sparrows Point can be assigned", recognizes the Financial Director of Mittal Steel, Aditya Mittal, which gives appointment to the investors to back for more details on the new management plans.