'60% of Arcelor stock traded since Mittal bid'

Don't vitiate concept of national treatment: Nath.

As much as 60 per cent of Arcelor's equity had changed hands since the day Mittal Steel announced its bid for the European steel major, Luxembourg's Minister of Economy and Foreign Trade Jeannot Krecke today told Commerce and Industry Minister Kamal Nath.

But Krecke did not name the identities that had bought these shares, sources close to the development said.

Of Arcelor's remaining 40 per cent shareholding, around 6 per cent was with the Luxembourg government, while the remaining was with hedge funds, Krecke added.

He said Luxembourg might choose to retain its stake in Arcelor even if Mittal Steel succeeded in the takeover bid.

Krecke's disclosures came amid charges that Luxembourg was framing a new takeover code to block Mittal's $22-billion bid for Arcelor.

Addressing the media later in the day, Krecke said the law, expected to become effective by mid-April, was being introduced to fulfill Luxembourg's obligations as an European Union member.

He pointed out that the Luxembourg regulator would consider Mittal Steel's bid for Arcelor only after the country's Parliament approved the proposed takeover law.

Krecke, who met Nath and Finance Minister P Chidambaram during the day, was told that New Delhi was concerned over Indians being discriminated against in matters like corporate takeovers.

"Nothing should be remarked which vitiates the concept of national treatment," Nath said.

The issue of a Double Taxation Avoidance Agreement also figured in his talks with Chidambaram.

Chidambaram is believed to have pointed out the need for a level playing field and free trade as essential precursors to such an agreement. Both sides have agreed to meet again on the issue.