Arcelor stockholders reject Severstal offer

More than half of all Arcelor SA shareholders voted down a merger with Russia's Severstal today, clearing the way for Arcelor and Mittal Steel to form the world's largest steelmaker.

Shareholders holding 57.94% of Arcelor voted against the deal, the vast majority of those who turned up for a shareholder meeting, which was called to consult them on the merger after Arcelor yielded to Mittal's latest offer on Sunday.

Earlier, Joseph Kinsch, president of the Arcelor supervisory board, told the meeting that a theoretical three-way marriage involving Severstal also was feasible but if such a deal were to be carried out all in one go, the risks of execution would be considerable.