Mittal could expand into Arcelor's high-margin markets, Arcelor could gain from Mittal's low-cost production.
In an interview with BBC News, Mittal explained that the lion's share of Arcelor's business lay in Western Europe "where growth is very flat or very small".
Mordashov, perhaps mindful of the cool reception given in May to the Severstal merger by Arcelor's rebel shareholders, also confirmed his intention not to increase his shareholding in Arcelor above 33.3%, without making a mandatory tender offer to all shareholders--in accordance with Luxembourg law.
Mittal Steel, Arcelor's original would-be predator, was scathing: "It remains a partial transaction, undervaluing Arcelor, which is to be pushed through without a proper shareholder vote, " read an official statement from the company.
The only justice would be towards Arcelor's top managers, who would certainly lose their jobs.
Nevertheless, the French government will be worried by a deal that could hurt Paris-listed Arcelor's 28, 500 French staff.
It is also unlikely: only about one-third of Arcelor's widely dispersed group of shareholders usually attend such meetings.
"We delivered the right access and messages in every capital city in Europe and, brick by brick, took down Arcelor's defenses, " Gnodde says.
Juncker said his government backed Arcelor's strategic plan and did not share Mittal's view that the combined company could form a European industrial champion.
What upsets shareholders most is Arcelor's cavalier attitude towards their rights.
Dolle, who has compared Arcelor's steel to high-quality perfume over Mittal's lower grade eau de cologne, would like to see an all-cash offer from Mittal before he's prepared to consider the bid.
FORBES: Arcelor's Dolle Reiterates Shareholder Opposition To Mittal
Though Mittal still hopes to win Arcelor's hand, the prospect of politically charged takeover battles has deterred many a cross-border bidder in the past and may make foreign firms more wary in the future.
The bank has mustered support from almost a third of shareholders (considerably more than the 20% required by law), which will oblige Arcelor's board to call an extraordinary shareholder meeting to consider the rules for a vote on the Severstal deal.
According to the online edition of a financial newspaper in the U.K., Indian billionaire and chairman of Mittal Steel Lakshmi Mittal is chewing over relinquishing his controlling stake in a move that could inspirit Arcelor's shareholders to accept the steel raja's hostile takeover bid.
Mittal's offer for Arcelor is competing against an alternative plan unveiled last week by Arcelor in which it plans to buy Russian firm Severstal in an attempt to thwart Mittal's advances.
Even if it were to win Dofasco's hand, Arcelor would lag some way behind.
Mittal overtook Arcelor as the world's largest steelmaker after buying America's International Steel Group in 2005.
Luxembourg-based Arcelor, the world's biggest steel producer, is eager to switch manufacturing capacity from Europe to cheaper regions.
Cross-border takeovers are common now (witness Mittal's purchase of Arcelor).
At the end of January the French government was surprised by Mittal Steel's hostile bid for Arcelor, a steelmaker with 30, 000 employees in France.
In June this year, the Mittal Steel Company, which began life as a small family-run company in the north of India, successfully took over Luxembourg-based rival Arcelor to create the world's biggest steel manufacturer.
The Financial Times report suggested that Arcelor Mittal, the world's largest steel maker, could afford to match the 9% stake bought earlier this year by China's state-owned aluminium group Chinalco together with US firm Alcoa.
Mordashov's revised offer comes just two days after Arcelor backed down over a planned share buy-back designed to frustrate billionaire steel raja Lakshmi Mittal's approach.
That's what Lakshmi Mittal will need if he's to pull off his Arcelor coup d'etat.
Ah well Arcelor shareholders, looks like it's back to the forge for you.
Dolle said that Arcelor had been aware of Mittal's intentions for several months, and was steeled for the ensuing tug-of-war.
Arcelor rubbished the quality of Mittal's steel and criticised its corporate governance.
Thanks to rising demand for steel, producers like Arcelor, until now the world's largest producer of the stuff, have managed to push up prices four times during the past year.
Studz spent freely on new hires, building up mega negotiating teams that helped advise on deals like e.on's bid for Spanish utility Endesa and billionaire Lakshmi Mittal's takeover of European steelmaker Arcelor.
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