1. The takeover bid through an example: Mittal Steel - Arcelor By Jonathan Villarrubia

2. Summary Vocabulary General Overview Presentation of our example Summary of the offer Stakes for Arcelor and conclusion Sources

3. Vocabulary OPA: a takeover bid Fusion: a merger AMF: Authority of Financial Markets bargain: une affaire To allure: séduire a floret: un fleuron

4. General Overview Definition: The takeover bid is the procedure which allows for one person physical or moral to make known publicly its intention to acquire all or any of the titles of a highly-rated firm. The AMF checks the admissibility of the offer

5. Presentation of our example

6. Presentation of our example (2) TypePublic (Euronext, LOR) Founded2002 LocationLuxembourg Key peopleGuy Dollé, CEO IndustrySteel ProductsSteel Revenue€ 32,611 billion (2005) Employees94 000 Websitewww.arcelor.com Type Public (Euronext: MT),(NYSE: MT) Founded1989 LocationRotterdam,Netherlands Key people Lakshmi Mittal, Founder, Chairman and Chief Executive IndustrySteel Products Steel, Flat Steel products, Coated Steel, Tubes and Pipes Revenue $28.132 billion USD Year to 31 Dec 2005 Employees179 000 Website www.mittalsteel.com

7. Summary of the offer 27th January 2006: Mittal Steel announced an €18.6 billion (£12.7 billion) bid for Arcelor 19th May 2006: Mittal increased its offer for Arcelor by 38.7% to €25.8 billion Mittal’s proposals: - a combination of titles and cash - only titles - only cash

8. Stakes for Arcelor and Conclusion Disappearance of the Arcelor sign and thus of one of the florets of French industry Called into question of the social benefits Loss of competitive advantage and technology transfer Creation of a globalized entity which will dictate its law because little competition Closing-down of factories, job loss, social plans???

9. Sources www.arcelor.fr www.mittalsteel.com fr.wikipedia.org/wiki/Arcelor fr.wikipedia.org/wiki/Mittal www.liberation.fr www.lesechos.fr