|Copyright Â© Graeme MacKay. Please check for MacKay's posting and publication rules by clicking here.
The ink was barely dry on Arcelor SA's purchase of Dofasco
Inc. when the Canadian steel company found its future up in
the air again as its would-be buyer became a target of the
world's largest steel maker in a hostile bid that could transform
Arcelor, the predator in the Dofasco bidding, became the prey
yesterday as Mittal Steel Co., the world's largest steel maker,
made a hostile $22.8-billion (U.S.) takeover bid for its
Luxembourg-based rival and agreed to flip Dofasco to
ThyssenKrupp AG, which appeared to have given up its own
bid for Dofasco just five days ago.
The Mittal play shocked steel industry executives around the
"The size and boldness of these moves is just stunning," said
Denis Turcotte, chief executive officer of Algoma Steel Inc. in
Sault Ste. Marie, Ont.
The deal would combine the two largest global players to
create a giant capable of shipping more than 100 million tons
of steel annually. It would be more than three times the size of
the third-largest steel company, Nippon Steel Corp. of Japan.
"This is not about creating a giant," Mittal chief executive
officer and chairman Lakshmi Mittal told a news conference in
London. "It's about creating the sustainability of the steel
|Steel deal leaves Dofasco up in the air
|Other cartoons of interest