Lenders likely to reject ArcelorMittal's conditional offer for Essar Steel

ArcelorMittal is ready to pay Uttam Galva's debt. The company held a 29% stake in the steel company

ArcelorMittal has made an offer to repay the debt of Uttam Galva Steels, a bank defaulter, but with a rider that it should be declared the winner of the bid for Essar Steel. The offer to repay Rs 530 billion of Uttam Galva’s loan was made by ArcelorMittal in a letter to banks last week.

However, Essar's lenders are not enthused by the conditional offer, and are expected to reject it in this week's meeting as they are anticipating aggressive bids from Numetal, Vedanta and JSW Steel in the next round.

ArcelorMittal held 29 per cent stake in Uttam Galva