LNM may bid $1bn for Turkish plant

Close on the heels of acquiring a 37% stake in a leading Chinese steel firm, Mittal Steel Company, headed by NRI steel tycoon Lakshmi Mittal, plans to acquire three more steel plants in Eastern Europe and Turkey at an estimated cost of $1.5 billion.

Mittal plans to bid around $1 billion for a 49% stake in Eregli Demir ve Celik Fabrikalari (Erdemir), which is being sold by the Turkish government.

He faces tough competition from Arcelor, the Luxembourg-based group that Mittal recently overtook to become the world's leading steel maker, and US Steel of America, according to a report in 'The Independent on Sunday'.

Erdemir is the world's 13th largest steel maker and is listed on the Istanbul stock exchange. Whoever buys the state's stake is expected to take over management of the group. A preferred bidder is due to be announced within weeks, the report said.

Mittal is also putting in an offer for Vitkovice Steel, the Czech producer put up for sale by the state on Thursday. Again, Arcelor and US Steel are the main rivals.

Mittal is already the largest steel maker in the Czech Republic though the international nature of the business means that there are likely to be a few anti-trust problems. Analysts expect it to be valued at more than $200 million.