regulator-forces-arcelormittals-hand

Regulator forces ArcelorMittal's hand

The Hong Kong Exchange rules that ArcelorMittal must pay $621 million to minority shareholders of China Oriental, even though approvals for the deal are still not in place.
December 09, 2007
ArcelorMittal will pay $621 million to the 27% minority shareholders of China Oriental to comply with the Hong Kong regulatorÆs ruling that it acted in concert with China OrientalÆs majority shareholder when it acquired a 28% stake in the Chinese steel company in November. This is based on a per share price of HK$6.12 $0.79.

The total amount ArcelorMittal will fork out depends on how much it finally pays China OrientalÆs controlling shareholder, Han Jingyuan, for his controlling 45% stake. This price will be based on pre-determined calls and puts using a formula which takes into account Ebitda and net cash or debt position in addition to volume weighted average traded...
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