he added that arcelors directors are defending

Arcelor parks Dofasco in Dutch foundation

A takeover battle involving the world's two largest steel producers has taken a novel twist and left Canada's Dofasco Inc. in replica louis vuitton bags the hands of a foundation based in the Netherlands.

The battle involves Mittal Steel Co. 2 producer.

Dofasco has become a pawn in the battle ever since it was acquired by Arcelor in March for $5.5 billion (Canadian). 1:1 replica handbags Arcelor considers the Hamilton based company a key asset and a lucrative inroad into the North American automotive steel market, where Dofasco has about a 10 per cent market share. The two companies have also developed a unique steel technology called Extragal.

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To help pay for the takeover, London based Mittal has said that if its offer for Arcelor succeeds, it will sell Dofasco to Germany's ThyssenKrupp AG, which lost cheap louis vuitton bags from china uk the bidding war for Dofasco.

Arcelor has made it clear that it does not want Dofasco falling into the hands of an archrival. Yesterday, Arcelor's board of directors announced a series of measures to thwart Mittal's offer. Those measures included increasing its replica louis vuitton annual dividend by about 50 per cent, paying a special 5 billion ($7.125 billion) dividend and putting Dofasco into a newly created Dutch cheap replica handbags foundation called Strategic Steel Stichting.

The foundation will have a three member board, cheap louis vuitton bags from china all appointed by Arcelor. The directors replica louis vuitton bags consist of Arcelor's general council Federik Van Bladel; a former company executive, Robert Hurdy; and American lawyer Allan Tuttle, whom the company said has not done any work for Arcelor.

The company insisted that although the foundation is independent, Arcelor will continue to have full day to day control over Dofasco. However, any decision to sell Dofasco will be left to the foundation's board. In addition, it said the foundation will be in place for at least five years "unless the [foundation's]board decides to dissolve it."

During a conference call from Paris, Gonzalo Urquijo, Arcelor's chief financial officer, said the foundation structure will make it impossible for Mittal to gain control of Dofasco and sell it. He added that even if Mittal succeeded in acquiring Arcelor, it would not be able to replace the foundation's directors. That's because under its incorporation, the foundation appoints its own future directors.

Mr. Urquijo rejected suggestions that the move amounted to a poison pill. "We do not take poison pills and this is not a poison pill," he said. "This was done in the interests of our shareholders." He added that Arcelor's directors are defending "this marvellous asset we have that is called Dofasco. That is what they have done."

He also rejected criticism that Arcelor's board did not seek shareholder approval for the move. The board was fully entitled to take this action, he said, because it represents all shareholders. He added that this kind of structure is not uncommon in Europe.

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http://lsungond22.blogspot.com/2020/06/and-in-communities-across-country.html cheap replica handbags "It is a structure that is more than 100 years old in Holland and very well known and it has been used in many occasions and in many situations," he said.

In fact, the Netherlands has become something of a centre for these kinds of non charitable foundations. Last year, Russian oil group OAO Yukos transferred its financial arm into a Dutch foundation to fend off a takeover bid by Russia's state oil company Rosneft. In 1999, Italian fashion house Gucci used a similar foundation to block a bid by France's Mot Hennessy Louis Vuitton SA.

Mr. Urquijo said there is nothing stopping Mittal from pursuing its offer. And, should Arcelor's board ever agree to an offer from Mittal, he said the foundation's board would take note. "I'm sure the perception of the trustees of this foundation will also change," he said. "It's their decision but I'm convinced [the board's perception]will change also."

Mittal was quick to scoff at Arcelor's move. The "announcement by the board of Arcelor goes against the interests of its own shareholders and is an attempt to deprive them of the replica louis vuitton bags from china right to decide on the merits of Mittal Steel's offer," the company said in a release. "Mittal's offer is not dependent on the sale of Dofasco and nothing in this announcement alters our resolve or ability to proceed with our offer."

Some Arcelor shareholders also objected to the creation of the foundation.

http://lsungond22.blogspot.com/2020/06/and-in-communities-across-country.html Matthew Halbower, a portfolio manager for Minnetonka, Minn. based Deephaven Capital Management LLC, which owns shares in both Arcelor and Mittal, said the formation was "wholly inappropriate" and will destroy shareholder value.

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"Arcelor's management and board have gone out with the message to the world that they were going to create shareholder value," Mr. Halbower told Dow Jones news service. "They said they weren't going to destroy shareholder value."

For its part, Dofasco tried to remain out of the fray yesterday. Company spokesman Gord Forstner said the battling in Europe, and the creation of the foundation, does not affect Dofasco's operations. "At this point we are an Arcelor company and confident of our future there," he said. "That's where things are today."What's happening with Dofasco?

Arcelor SA is putting its shares of Canada's Dofasco Inc. into a foundation. Based in the Netherlands, it will be governed by a three member board. Arcelor will continue to run Dofasco's day to day operations. Designer Louis Vuitton Replica Handbags But the foundation's directors, all appointed by Arcelor, must approve any sale aaa replica designer handbags of Dofasco. That means even if Mittal succeeds in acquiring Arcelor, it will not gain control over Dofasco unless the foundation board approves. The foundation is expected to remain in place for five years. It can be dissolved at the request of the foundation's board.

Why is Arcelor making the move?

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Luxembourg based Arcelor is fighting a hostile takeover by competitor Mittal Steel Co. NV. Arcelor is desperate fake designer bags to hang on to Dofasco and not allow it to fall into the hands of a major competitor. Arcelor view Dofasco as a 'marvellous' asset and a key ot getting a foothold into the North American market for automotive steel. The two companies have also developed a unique product together that Arcelor does not want to see end up the ThyssenKrupp.