The Indian MITTAL STEEL group has launched its hostile takeover bid for rival ARCELOR -€ 19 billion in cash and shares. Shareholders in the latter have 40 days (the takeover will be concluded by 29 June) to decide on whether to sell their shares to MITTAL or not. If they agree to the offer, they will get four MITTAL STEEL shares and € 35.25 for five ARCELOR shares. If MITTAL convinces the authorities, it will create a world steel giant worth around USD 40 billion, employing 320,000 people and producing around 10% of all world steel. Since the bid was announced on le 27 January, ARCELOR has called on its shareholders to reject the offer and preserve its independence. In an attempt to persuade them to reject the bid it has offered an increased dividend for 2005 and a € 5 billion share buyback at a price above the market level. The European competition authorities are expected to reach a decision on 7 June on whether the bid complies with competition rules.