THE HAGUE: Three hedge funds on Wednesday asked a Dutch court to block the merger between steel giants Mittal Steel and Arcelor because the companies changed their originally announced share exchangeratio.
SRM Global Master, Trafalgar Catalyst and Trafalgar Entropy argued before the court in Rotterdam, where Mittal is based, that the ratio of seven Arcelor shares for eight ArcelorMittal sharesannounced in May was unjust.
They say a merger should be blocked unless it respects that exchange ratio of seven Arcelor shares for 11 ArcelorMittal as was announced in the initial takeover bid of Mittal for Arcelor.
The funds, who have one per cent of Arcelor shares, calculate that they will lose 152 million euros (205 million US dollars) if the exchange ratio of eight ArcelorMittal shares for seven Arcelorshares is upheld.
