Arcelor To Bid For Kryvorizhstal (KRST: BUY)
15 June 2008
Arcelor President Guy Dolle has announced Arcelor is ready to bid EURO 3 bn for a 93% stake in Kryvorizhstal, following a recent meeting with Prime Minister Yulia Tymoshenko. The tender terms have not yet been disclosed. Concorde Capital: The proposed price is at a premium to current market valuations. At the same time, the privatization of Polskie Huty Stali by LNM in 2003 (now owned by Mittal Steel) reached almost USD 3.3 bn. PHS is similar to KRST in terms of sales, capacity and output, but KRST is more attractive than PHS in terms of cost efficiency, as it is a vertically integrated steel maker. Additionally, a large local bank has conducted successful ‘skupka’ of KRST over the last year and has some big blocks available. Please contact the sales desk if interested in discussing further.
