Arcelor

And both Arcelor and Mittal recently lost out to a domestic bidder for a slice of Erdemir, a Turkish state-owned steel firm.

First, on June 30th, at least half Arcelor's shareholders must vote against the proposed merger with Severstal to stop it.

For the sake of investors in Europe, what matters is not just who wins Arcelor, but how the battle is resolved.

Several shareholders, including Romain Zaleski, Arcelor's biggest, with a 7. 8% stake, have decided to vote against a merger with Severstal.

It would, instead, give him the right to override all other parties, not least Arcelor's legal owners.

Arcelor first said it would pay US$900m for a 38 per cent stake in Laiwu nearly two years ago, before its merger with Mittal.

Luxembourg-based Arcelor on Tuesday reported that third-quarter profit rose 48% to $1. 35 billion from 910 million a year earlier.

For instance, although China accounts today for one-third of global demand, Baosteel, its biggest producer, is much smaller than Arcelor.

Arcelor wasn't the only steelmaker trending lower from the second quarter.

And Arcelor Mittal enjoys massive economies of scale and globally diversified operations.

If Arcelor's managers get away withflouting that principle, shareholders everywhere in Europe will be the losers.

Among the top 30 managers of Arcelor Mittal there are nine different nationalities.

Second, and more important, the Arcelor-Mittal deal demonstrates Europe's deepening integration into the global economy.

Thus was born Arcelor Mittal, the first steel company with an annual output of more than 100m tonnes.

He's led a strategy of growth by acquisition, most notably orchestrating the $38 billion takeover of European rival Arcelor.

If Mittal manages to buy more than 50% of Arcelor shares by the time the tender offer expires, the Severstal deal will fall through.

He has made further concessions to get Arcelor's bosses to concede defeat, contenting himself with a 43. 6% stake in the new company.

Today, U. S. Steel, Arcelor Mittal, and Nucor control more than half of U. S. production.

Arcelor-Mittal, the world's largest steelmaker, has a stock price that's only twice its annual earnings per share.

Arcelor Mittal, based in Luxembourg, is the world's largest steel firm.

Over the past 5 months Arcelor's management have done everything they can to prevent a deal with Mittal Steel going ahead.

He says it was "a mistake" to have sold Arcelor, a steelmaker taken over by Mittal last year.

The combined Mittal-Arcelor group will have three joint- venture steel operations in China.

But he is hoping he can demonstrate that Arcelor Mittal can bring new technologies and management methods to the country.

Arcelor Mittal, the world's largest steel producer, has a profit margin of just 3. 7% and return on assets of 2. 7%.

Earlier this year, Arcelor agreed to buy 38. 41 per cent of the listed vehicle of Laiwu.

UNTIL late last year Arcelor was Europe's largest steelmaker.

The world's largest steelmaker, Arcelor Mittal, Mittal's chief financial officer, said the actual demand continues to grow, but slower;

Mittal Steel wins the battle for Arcelor