PM seeks fair deal for Mittal

Chirac says he has nothing against a non-European firm taking over a European company.

French President Jacques Chirac yesterday denied charges of racism in Europe's reaction to Mittal Steel's $23-billion hostile takeover bid for Arcelor SA, saying he had no problem with an Indian acquiring a European company, though France had legitimate concerns over the bid.

"In principle, we have absolutely nothing against a non-European taking over a European company," Chirac said.

He also ruled out any interference in the bid. "We will wait and see. We are not pre-judging anything," he said.

At a joint press conference with Chirac, Prime Minister Manmohan Singh said, "We are simply standing by, waiting for explanations to be given. The President explained his position and it is my hope that a fair decision, taking into account the interests of all the shareholders, will be taken."

But Chirac said the proposal was a "hostile bid'' without any industrial plan and prior consultation, which was contrary to practice.

"The situation, as it stands right now, is this: quite simply, a hostile bid has been made contrary to practice, with no prior explanation and no reason given, for a large European company. We have no notions of what are the intentions, or what lies ahead of the company in question," he said.