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Mittal Steel starts exchange offer for Arcelor securities
By Jennifer Chiou
New York, June 7 - Mittal Steel Co. NV said it began an exchange offer for the shares and convertible bonds due 2017 of Arcelor SA.
The company is also offering to exchange Arcelor's American Depositary Shares, each representing one Arcelor common share.
Mittal said it will exchange one of its class A common shares and €12.92 in cash for each Arcelor convertible and one Mittal class A share and €10.05 in cash for each Arcelor share or ADS tendered.
In addition to or as an alternative, Arcelor shareholders may participate in one or both of two secondary capped offers, one for cash only and the other for Mittal class A common shares only.
In those cases, Mittal Steel is offering to exchange €36.69 in cash for each Arcelor share, or 1.3773 Mittal class A common shares for each Arcelor share.
The company added that tenders in the secondary offers are subject to a pro-ration and allocation procedure that will ensure that the portion of the tendered Arcelor shares that are exchanged for Mittal Steel shares and the portion of the tendered Arcelor shares that are exchanged for cash will be 72.6% and 27.4%, respectively.
Mittal Steel added it started on May 18 exchange offers for Arcelor securities in Belgium, France and Luxembourg and on May 24 in Spain.
The offers are conditioned upon tenders from a majority of the total share capital and voting rights of Arcelor on a fully diluted basis in the U.S. offer and the European offers.
The U.S. offer and withdrawal rights expire at midnight ET on July 5.
Goldman, Sachs & Co., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc. and SG Americas Securities, LLC are acting as dealer managers for the U.S. offer. D.F. King & Co., Inc. is the information agent.
Mittal Steel is a Rotterdam, Netherlands-based steelmaker.
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