Global steel leader ArcelorMittal may counter iron ore miner Cleveland Cliffs' $ 8.8 billion offer to acquire US-based coal mining firm Alpha Natural Resource, a UK media report said.
"ArcelorMittal is considering whether to disrupt the $ 8.8 billion takeover of US coal miner Alpha Natural Resources by Cleveland Cliffs with a counter bid," a Financial Times report quoting people close to the company said.
The report also said that the global steel giant is also evaluating other options such as wait-and-watch till the deal falls apart or taking over the combined entity later.
Last month, ArcelorMittal had indicated that it was willing to make an all-cash offer for Alpha. FT said ArcelorMittal's indication prompted "...The target to seek others bid."
FT report also stated that, earlier Alpha was able to drum up a higher cash-and-stock offer from US iron ore miner Cleveland-Cliffs, and then tried to gauge whether ArcelorMittal would top it. At that time ArcelorMittal had pulled back to evaluate the few other large North American coal assets on the market.
Alpha and Cleveland Cliffs had announced a deal on July 16, however, the proposal had run into trouble with a major shareholder of Cleveland - Cliffs Harbinger Capital opposing the transaction.
On the New York Stock Exchange, shares of Alpha Natural Resources had dropped over 3.75 per cent to close at $ 98.95 yesterday.
