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Luxembourg thwarts Mittal bid
By agencies
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Thursday, 23 March 2006, 20:30 IST
LUXEMBOURG: Lawmakers in the tiny European country of Luxembourg approved a change in the country's takeover rules that could threaten Mittal Steel's 19 billion bid for Arcelor.
After an outcry over the unsolicited bid launched in January, the finance committee yesterday backed a change which would prevent a bidder from re-submitting a takeover offer for a listed company in Luxembourg for a period of 12 months.
A source close to the deal said the change could hurt Mittal if Arcelor moves to defend itself, for example by issuing more shares, forcing Mittal to seek to re-submit its bid.
"This could be used as a poison pill," the source said.
Arcelor itself has been fighting against the offer, saying it undervalues the company and shareholders would not back it.